USD/CNH holds below key resistance – BBH

The Chinese yuan remains under pressure as April’s economic data came in softer than expected, reinforcing calls for further policy support to sustain growth, BBH FX analysts report.

China's April data misses expectations

"USD/CNH is firmer but holding under its 200-day moving average at 7.2235. China’s April real sector data was soft. Industrial production rose 6.1% y/y (consensus: 5.7%) vs. 7.7% in March. Retail sales grew 5.1% y/y (consensus: 5.8%) vs. 5.9% in March and fixed-asset investment eased 4.0% YTD (consensus: 4.2%) vs. 4.2% in March."

"More policy easing and fiscal reforms that lead households to gain a greater piece of the economic pie are necessary to support growth."

May 19, 2025

USD/JPY: Major support at 144.50 is unlikely to come under threat – UOB Group

US Dollar (USD) could drop below 144.90 against Japanese Yen (JPY); the major support at 144.50 is unlikely to come under threat. In the longer run, USD remains in consolidation, but likely within a tighter range of 144.50/147.30, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH: Expected to trade in a sideways range of 7.1990/7.2190 – UOB Group

US Dollar (USD) is expected to trade in a sideways range of 7.1990/7.2190. In the longer run, a breach of 7.2330 would indicate that the likelihood of USD declining to 7.1700 has faded, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.