- Strong rise in emerging market currencies and those linked to commodities.
- USD/MXN breaks strong support at 19.30, the intermediate at 19.15 and goes for 19.00.
USD/MXN broke below 19.30 and extended the decline to 19.06, the lowest level since February 2020. The outlook remains bearish, although there is strong support at 19.00/05.
In case of reaching the 19.00 zone, an upward rebound could be expected, which should lose strength in the vicinity of 19.15; and if it exceeds said level 19.25/30, it could contain the advance. If the bearish course extends below 19.00, the next supports appear at 19.88 and then 19.72.
Emerging Market Currencies Rise
The advance of the Mexican peso against the dollar is not very surprising on Tuesday. USD/ZAR (South African rand), USD/KRW (Korean won) and USD/MXN are all down more than 1% so far this day. In turn, the NZD and the AUD are also advancing firmly against the dollar.
The rise in the price of commodities, led by the rally of 2.5% of the barrel of WTI is a driving factor for this group. The expectation of a less aggressive Federal Reserve, plus signs of a slowdown in Europe, contribute to the weakness of the dollar.
In a few hours, inflation data from Germany will be released. In the US, the next relevant report will be on Wednesday with the growth figures for the third quarter and on Friday the official employment report.
technical levels
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
