USD / MXN reaches intraday lows since March and bounces to 20.90

• The Mexican peso remains firm against the dollar, although it cannot break a key level.
• USD / MXN tests the 20.80 / 85 zone, which for now prevents further declines.

USD / MXN is trading around 20.90, unchanged from yesterday’s close, after falling to 20.83, the lowest intraday level since March. The price rebounded from the low in months, but the bias remains to the downside.

The dólar operates with mixed results against emerging market currencies. In this group, the fall of the Turkish lira of more than 1% against the dollar stands out. At the other extreme is the South African rand, which rose 0.55%.

The Mexican peso remains unchanged on Tuesday, but with the trend in favor. Stock exchanges throughout the world operate on mixed terrain, contributing to the lack of clear direction.

US economic data released Tuesday (durable goods orders and home prices) were better than expected but did not weigh on the dollar. Attention is focused on the presidential elections that will be in a week. In turn, the expectation of more fiscal stimuli before the electoral act is almost nil.

In Mexico, it was known that economic activity in Mexico moderated its recovery in August, registering a growth of 1.1% compared to the previous month, according to the Global Indicator of Economic Activity. This implies a slowdown in the rebound.

Technical overview

The USD / MXN remains on a bearish bias and is testing the 20.83 level. A confirmation below would enable an extension of the decline with a possible target at 20.50 and then 20.30. In the opposite direction, the first resistance of consideration is around 21.10 and then it will follow 21.30 before the strong zone of 21.85.