USD/CNY rises as China June retail sales miss at +4.8% vs +5.4% expected

USD/CNY strengthened following disappointing Chinese economic data, with June retail sales growing only 4.8% year-over-year versus expectations of 5.4% and prior reading of 6.4%. The weaker consumption data suggests ongoing challenges in China's economic recovery, weighing on the yuan. However, industrial production surprised significantly to the upside at 6.8% y/y versus 5.6% expected, indicating manufacturing resilience. Fixed asset investment also disappointed at 2.8% YTD y/y compared to 3.7% forecast. The urban unemployment rate remained steady at 5.0%, while separate data showed house prices declining 3.2% y/y in June. The mixed data reinforces expectations that the People's Bank of China may need to maintain accommodative policies to support growth. For forex traders, the retail sales miss is likely to keep pressure on the yuan, with USD/CNY finding support above 7.26 levels as markets digest China's uneven recovery trajectory.