- The USD/CLP starts the week with a gain of 0.29% on the day.
- Copper is down 0.73% on the day ahead of China’s manufacturing PMI report.
- Investors will focus on the unemployment rate and the interest rate decision by the Central Bank of Chile next Wednesday.
The USD/CLP recorded a session low at 956.02 finding buyers who pushed the pair to a daily high at 962.46. At the time of writing, the US dollar is trading at 960.61, against the Chilean Peso, gaining 0.29%.
USD/CLP rebounds ahead of Chilean central bank interest rate decision
The Chilean peso is extending losses against the US dollar, posting its third consecutive week of decline. Investors will be keeping an eye on the release of the unemployment rate next Wednesday, which analysts estimate at 8.3%, in line with the previous record. Likewise, a cut to 5.50% from 5.75% in the interest rate by the Central Bank of Chile is expected.
On Tuesday, China’s manufacturing PMI is due to be released, with expectations for a decline to 49.3 from 49.5 in the previous reading. The slowdown in economic activity in China, coupled with the housing crisis, has driven the price of copper to a four-month low of 4.05.
Technical levels in the USD/CLP
The USD/CLP remains bullish in the short term, reacting to the upside at key support located at 942.30. We see resistance at 968.00, in confluence with the 23.6% Fibonacci retracement. The next resistance is at 993.00 given by the pivot point of April 16. The relative strength index shows an approach to overbought levels, standing at 63, above the average level of 50.
USD/CLP 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.
