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FxWirePro: USD/CNY rebounds from 1 -week low as soft China data pressures yuan - EconoTimes


FxWirePro:  USD/CNY rebounds from 1 -week low as soft China data pressures yuan - EconoTimes

* USD/CNY rebounded from one week low on Monday as China's yuan weakened following soft Chinese economic data.

* Industrial output grew 6.1% year-on-year in April, according to National Bureau of Statistics (NBS) data released Monday. Although this slowed from March's 7.7% growth, it surpassed the forecasted 5.5% increase.

* Retail sales increased by 5.1% in April, down from 5.9% in March, falling short of the expected 5.5% growth. The unemployment rate dropped to 5.1% from 5.2% in March.

*. The data reinforced worries about the impact of ongoing U.S.-China trade tensions on China's domestic economy.

* At GMT 06:56, the dollar was up0.08% to 7.214 against the Chinese Yuan.

* Immediate resistance is located at 7.224(50%fib), any close above will push the pair towards 7.239(61.8%fib)

* Support is seen at 7.206(38.2%fib) and break below could take the pair towards 7.186 (23.6%fib).

Recommendation: Good to sell around 7.220 with stop loss of 7.250 and target price of 7.180

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