FxWirePro: USD/CNY outlook weaker on renewed downside pressure

• USD/ CNY slipped lower  on Monday as broad weakness in the U.S. currency offset concerns over an economic slowdown in the Asian giant and a softer-than-expected official guidance fix..

• Industrial output rose 4.8% year-on-year in November, the weakest pace since August 2024, slowing from 4.9% in October and missing the 5.0% forecast, according to National Bureau of Statistics (NBS) data released Monday.

•Retail sales, a key measure of consumption, rose just 1.3% in November the weakest pace since December 2022, when China lifted pandemic restrictions falling well short of October’s 2.9% growth and the 2.8% forecast.

• In global markets, the dollar was nursing losses, with focus squarely on the rate outlooks across major economies as the new year approaches.

•  Immediate resistance is located at 7.055 (Daily  high), any close above will push the pair towards 7.069(38.2%fib).

• Support is seen at 7.048(23.6%fib) and break below could take the pair towards 7.039 (Lower BB).

Recommendation: Good to sell around 7.050  with stop loss of 7.070 and target price of 7.030