The USD/CNH is breaking out of a triangle today ahead of key Chinese data. On Wednesday morning in Asian trade, China will release retail sales, GDP< unemployment rate, and Fixed Asset Investment. Ahead of this, the pair is already threatening a move to the key resistance at the 7.3800 level. A level that has capped the market in October 2022 and Sept 2023.
A break above this level is sure to trigger a massive amount of stops and could carry the pair toward the 127% extension at 7.5600. A weakening Yuan could be a way for China to help insulate the Chinese economy and its imports (making them cheaper to the rest of the world) by allowing a fresh weakening cycle of its currency
