China’s Q4 GDP growth outperformed expectations at 4.5% yoy, up from 2.9% in Q4, and beat expectation of 4.0% yoy. Retail sales in March saw a 10.6% yoy increase, the largest since June 2021. Despite the positive figures, industrial production rose by only 3.9% yoy in March, missing the anticipated 4.7%. Additionally, fixed asset investment saw a 5.1% ytd yoy growth in March, falling short of the expected 5.8%.
The National Bureau of Statistics (NBS) report on Tuesday cited challenges faced by China in the first quarter, including a “grave and complex international environment” and domestic tasks for reform, development, and stability.
USD/CNH has remained in a sideways pattern since dropping to 6.8100 in late March. 61.8% retracement of 6.6971 to 6.9963 at 6.8114 offered some support, halting the decline from 6.9963. However, a break of 6.9139 resistance is needed to confirm completion of the pullback. Without this confirmation, another fall is in favor, and a break of 6.8100 could lead to retesting 6.6971 low from January.
