China’s industrial production hits 17-year low, USD/CNH jumps to 200-hour MA

• Offshore yuan (CNH) is losing altitude at press time, likely due to below-forecast China’s factory output data.  
• USD/CNH has printed session highs above the 200-hour MA, contradicting the bear flag breakdown confirmed earlier this week.  

USD/CNH, which was mildly bid in early Asia, extended gains to the 200-hour moving average (MA) in the last 60 minutes on the back of a below-forecast China’s factory output data.  

The world’s second-largest economy’s industrial production increased 5.3 percent in the first two months of this year, the slowest pace of expansion in 17 years, missing the forecast of 5.5 percent year-on-year rise.  

Both fixed-asset investment and retail sales bettered estimates with 6.1 percent and 8.2 percent rise, respectively, but, so far, have failed to put a bid under the offshore yuan exchange rate (CNH).  

USD/CNH is currently trading at 6.7138, representing a 0.20 percent gain on the day. The pair clocked session highs above the 200-hour MA of 6.7164 a few minutes before press time.  

Technically speaking, the pair’s 0.20 percent gain has weakened the bearish view put forward by the flag breakdown confirmed on March 12.  

Technical Levels