Beijing, China Central Business District cityscape. Image source: Sean Pavone © 123RF.com
China's economy grew by 18.3 per cent in the first quarter of 2021, matching the expectations of the preliminary market forecasts. This marks a sizable acceleration of the rate of economic expansion from the 6.5 per cent growth rate that was recorded over the previous quarter.
The record-breaking growth in China is the result of the reopening of the global economy, which is occurring parallel to the vaccine rollout. Global economic activity is allowed to pick up alongside the acceleration of international trade. Additionally, the sharp uptick in consumption in the first three months of 2021 contributed to the faster pace of recovery.
China q/q GDP Growth Rate. Image source: TradingEconomics.com
According to the National Bureau of Statistics of China, the rate with which China's economy advanced in the first quarter set a new all-time record. The international pick-up in demand underpins the prospects for robust growth over the medium-term as well.
These baseline projections are rooted in the continuously rising energy demand, keeping the price of crude oil high. As a result of the heightened demand, costs are rising unevenly across different countries.
Today's data exacerbated the dollar woes against the Chinese yuan in the short term. As can be seen on the weekly chart below, the USDCNY dropped by nearly 0.50 per cent so far into the current week. Nevertheless, the pair still finds itself in a strong bullish correction.
The latter was initiated from the major support level at 6.47000, which had previously served as an upper boundary for the last Accumulation range. Thus, the opportunities for swing trading on the USDCNY remain prevalent. The next major target for the pair is underscored by the major resistance level at 6.7000.
USDCNY 1W Price Chart. Image source: Trendsharks ©, created with TradingView.com
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