USD/CNH holds below key resistance – BBH

The Chinese yuan remains under pressure as April’s economic data came in softer than expected, reinforcing calls for further policy support to sustain growth, BBH FX analysts report.

China's April data misses expectations

"USD/CNH is firmer but holding under its 200-day moving average at 7.2235. China’s April real sector data was soft. Industrial production rose 6.1% y/y (consensus: 5.7%) vs. 7.7% in March. Retail sales grew 5.1% y/y (consensus: 5.8%) vs. 5.9% in March and fixed-asset investment eased 4.0% YTD (consensus: 4.2%) vs. 4.2% in March."

"More policy easing and fiscal reforms that lead households to gain a greater piece of the economic pie are necessary to support growth."