- The Dollar loses 0.53% on the day against the Chilean Peso, remaining in the operating range of the previous day.
- China’s CPI rose 0.2% year-on-year in November, missing analyst estimates.
- China’s Politburo will establish a loose monetary policy in the short term, according to its statements today.
USD/CLP hit a day’s high of 973.10, attracting sellers who dragged the pair to a day’s low of 968.12. Currently, the USD/CLP trades above 969.80, resuming the bearish outlook in the short term.
The Chilean peso gains ground after China’s economic stimulus announcement
China’s Politburo meeting has caught the attention of investors by confirming the implementation of a more proactive fiscal policy, as well as a moderately loose monetary policy in the short term. These economic stimuli are intended to expand domestic demand, boost domestic consumption, and stabilize both the real estate and stock markets.
On the other hand, the Consumer Price Index increased by 0.2% year-on-year in November, being below the estimated 0.5% and the 0.3% recorded in October.
Following this news, the price of copper has risen 2.08% on Monday, reaching a maximum not seen since November 12 at $4.2439 per pound. In the midst of this context, the Chilean peso has gained traction against the dollar, consolidating at one-month highs, as Chile’s recent economic measures increase global demand for copper.
Technical levels in the USD/CLP
USD/CLP reacted lower at short-term resistance, given by the November 14 high at 989.15. The closest support area is seen at 940.90, close to the 50% Fibonacci retracement. The next key support zone is at 897.53, the September 27 pivot point.
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.
