USD/CNH fell 9% from the top of 2020 as investors expected the recovery of the economy after the pandemic. Investors sold the safe-haven assets dollars to other assets. In addition, the strong China economic data also support the CNH.
On the economic front, China’s industrial production rose 7.0% on year in November, as expected, while retail sales grew 5% on year,as expected, according to the government. China’s economy shows a great recovery after the outbreak of COVID-19.
On a daily chart, USD/CNH is under pressure below both declining 20-day and 50-day moving averages. The relative strength index is capped by a declining trend line. Currently, the pair is near the 52-week low, suggesting the strong downside momentum for the prices. The bearish readers could set the resistance level at 6.6600, while resistance levels would be located at 6.4400 and 6.3200.