USD/CNH clings to near $6.5000 after China data disappoints, USD gains
- USD/CNH extends the previous session’s gains on Monday.
- US Dollar Index makes recovery moves above 92.50.
- DIsmal economic data weighs on the prospects of CNH.
USD/CNH prints minor gains on the first trading day of the fresh week in the Asian session. The Chinese currency (CNH) pair responds to the latest downbeat data from China and renewed coronavirus fears.
At the time of writing, USD/CNH is trading at $6.4786, up 0.05% for the day.
China’s Retail Sales grew 8.5% in July on a yearly basis, lower from the previous month reading of 12.1% gain, and much below the market expectations of 11.5%. The reading was lowest since December 2020 pointing towards the underlying concerns on consumption during the COVID-19 pandemic.
The Unemployment data jumped 5.1% in July from 5.0 in June, coming at the highest level since April whereas, Industrial Production scaled up 6.4% on yearly basis, well below the market expectations of a 7.8% rise.
Another weighing factor for the CNH prices remained the New Home Prices data, which showcase the slower pace of growth in the past four months.
On the other hand, the US Dollar Index attempts to recover from Friday’s sell-off amid uncertainty about the geopolitical implications of the Afghan government collapse in the region.
In the absence of any major fundamental release, the market dynamics continue to influence the pair’s performance
USD/CNH additional levels