- USD/CLP drops 1.04%, hitting three-week lows.
- Copper is up 4.03% on the day, reaching highs not seen since July 16.
The USD/CLP set a daily high at 923.00, finding sellers who pushed the pair to lows not seen since September 2 at 912.65. At the time of writing, the US Dollar is trading at 913.28 against the Chilean Peso, losing 1.04% on the day.
Copper price soars to 10-week highs on China stimulus
The world’s largest copper consumer, China, has implemented a series of measures aimed at boosting the economy. Pan Gongsheng, governor of the People’s Bank of China, announced that he will reduce the minimum reserve requirement ratio by 0.5%, as well as mortgage interest rates in order to promote the expansion of consumption and investment.
These measures have been well received by the market, causing the price of copper to rise by 4.03% daily, reaching a ten-week high of $4.49 per pound, not seen since July 16.
Technical levels in the USD/CLP
The USD/CLP established a resistance located at 951.88, given by the pivot point of September 10. The closest support is observed at 904.25, the low of August 27 that converges with the 23.6% Fibonacci retracement. The next key support level is at 881.85, given by the low of May 20. The Relative Strength Index is located at 38.23, below the midline of 50, confirming the bearish trend in the pair.
Chilean Peso Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
