- The US dollar loses 0.47% against the Chilean peso, remaining within yesterday’s operating range.
- Copper lost 0.43%, after reaching highs not seen since July 10 at $4.6228.
USD/CLP set a daily high at 905.91, finding aggressive sellers that took the pair to a day’s low at 900.73. At the time of writing, the US Dollar is trading at 901.65 against the Chilean Peso, falling 0.47% daily.
Copper soars to eleven-week highs after economic measures by the People’s Bank of China
The USD/CLP appreciates for the seventh consecutive session, approaching the four-month low, reached on May 28, located at 896.23. On the other hand, copper fell 0.43%, after reaching levels not seen since July 10 and setting a new high for the month at $4.6828 per pound.
The rise in copper prices reflects the increase in demand from China, the largest consumer of the metal in the world. Copper is trading higher for the third consecutive week, registering a monthly gain of 10.08%.
Earlier this week, People’s Bank of China Governor Pan Gongsheng declared a reduction in the 7-day repo rate to 1.5% from 1.7%, as well as down payments for second homes to 15% from 25%. %. These measures are additional to the decrease to 8% of the bank reserve ratio, with the objective of increasing the country’s economic activity.
Technical levels in the USD/CLP
USD/CLP continues the bearish trend, reacting lower from a resistance at 951.88, given by the September 10 high. The next important resistance is seen at 961.00, the pivot point of August 2.
The closest support is at 893.23 given by the May 28 low. The next key support is at 881.85, the May 20 pivot point.
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.
