China data shows signs of recovery

  • CHN50

Data from China Overnight

China's industrial production came in at 2.4% y/y. This is higher than the previous 1.3% but slightly lower than the 2.6% expected. Its retail sales printed at 3.5% y/y, a significant improvement from the previous months -1.8%. Fixed asset investment grew 5.5% y/y YTD, higher than the 5.1% for December.

Technical Analysis

FXCM's CHN50 basket has charted a series of higher troughs (HT) followed by higher peaks (HP). This is an uptrend. However, since February, the basket's price action has been corrective in nature. It has pulled back close to 50% of its impulse move from its October low. We are looking to see if it manages to chart the next higher trough (HT?) in the series, and continue its uptrend. It has lost momentum, with its RSI dipping below 50 (green rectangle). For the uptrend to continue, the RSI will need to reclaim the bullish side of 50.

Image by Gordon Johnson from Pixabay

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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