• USD/CNY dipped on Monday as investors assessed a mixed set of Chinese economic indicators.
• China’s industrial output grew 5.8% year-on-year in May, down from April’s 6.1% and below expectations, while retail sales posted an unexpected increase, official data showed Monday.
• Industrial output data from the National Bureau of Statistics missed Reuters' forecast of 5.9% growth and marked the slowest pace since November last year.
• Retail sales rose 6.4% in May, accelerating from 5.1% in April and marking the fastest pace since December 2023. The figure beat analysts’ expectations for a 5.0% increase.
•China’s fixed asset investment rose 3.7% year-on-year in the first five months of 2025, falling short of the 3.9% forecast
•Markets await policy cues as key financial officials, including the PBOC governor and securities regulator, prepare to speak at the Lujiazui Forum this week.
• Immediate resistance is located at 7.197(38.2%fib), any close above will push the pair towards 7.218(50%fib)
• Support is seen at 7.172(23.6%fib) and break below could take the pair towards 7.162 (Lower BB).
Recommendation: Good to sell around 7.190, with stop loss of 7.240 and target price of 7.170
