Chilean Peso Appreciates as US Dollar Falls

  • USD/CLP loses 0.15% on the day.
  • The Dollar Index (DXY) fell 0.32% following the release of US inflation data.
  • Investors will be keeping an eye on China’s Industrial Production and Retail Sales data later today.

The USD/CLP reached a daily high of 933.98 as aggressive sellers pushed the pair to a low of 928.46. The US Dollar is currently trading at 930.00 against the Chilean Peso, losing 0.15% today.

Price of the Dollar in Chile today, Wednesday, August 14: The Chilean Peso gains ground due to the fall of the US Dollar

The USD/CLP resumes the short-term bearish trend, reaching two-day lows at 928.46. On the other hand, annual inflation in the United States rose 2.9% in July, showing an increase slightly lower than the 3.0% expected. Following these results, the Dollar Index (DXY) signs its fourth consecutive session on the decline and presents a fall of 0.23%, to trade at 102.38, reaching lows not seen since August 5.

After the market closes, China’s Industrial Production and Retail Sales for July will be released. Investors expect these results to reflect a short-term economic recovery, increasing demand for copper and other metals needed for industrial growth.

Technical levels in the USD/CLP

USD/CLP respected a key resistance zone at 960.00, the high from August 2. The first support zone is located at 904.90, which is confluent with the 23.6% Fibonacci retracement. The next key support level is at 881.85, the low from May 20. The Relative Strength Index confirms the selling pressure in the short term, standing at 43.65, below the 50 midline.

Chilean Peso Daily Chart

Source: Fx Street

You may also like