USD/CNY slides as China targets 5% growth, yuan hits 14-month high

USD/CNY has declined sharply with the Chinese yuan reaching a 14-month high against the dollar, as China signals commitment to maintaining economic growth around 5% for 2026. The China Securities Times reported policymakers are debating between targeting 5% growth or adopting a wider 4.5%-5.0% range, suggesting continued policy support for the economy. Recent data showed China's economy stabilizing in November, despite persistent weak consumer demand clouding the growth outlook. The yuan's strength reflects market confidence in China's pragmatic approach to economic management and expectations of sustained policy support. Technical indicators suggest USD/CNY faces immediate support at current levels, with further yuan appreciation possible if China announces concrete stimulus measures. Traders should monitor upcoming Chinese economic data releases and policy announcements from the PBOC, as these could significantly impact the pair's trajectory in the near term.