China CPI and PPI rose above market expectations in February.
Weekly symmetrical triangular triangle limits nearby moves, Momentum line suggests further weakness.
USD/CNH supports China’s inflation data. Sellers attacked the 200-HMA during Wednesday’s Asian session trading. The CNH/USD pair of Chinese offshore currency (CNH), snaps a 2-day uptrend, even though it rose to 6.3215 at press time.
However, China’s Consumer Price Index rose above 0.8% to forecast 0.9% prior figures, while the Producer Price Index crossed 8.7% market consensus at 8.8% YoY, versus 9.1% in previous readouts.
After the pair’s recent rebound from the 200 HMA level of 6.33200, a descending trend line needs to be established, at least at 6.3245, before the pair challenges the upper line of a weeklysymmetrical triangle at 6.3295.
A downside break of the HMA support of 6.3200 will cause the quote to move towards the support line of 6.3130.
USD/CNH is still at 6.3300, with the flashed multimonth low of 6.3058 in February.
