USD/MXN extends its upside above 17.40, eyes on US data ahead of Banxico rate decision


  • USD/MXN attracts some buyers on Tuesday amid the USD demand.
  • Mexico’s headline inflation came in at 4.64% for the first half of September from 4.64% at the end of August.
  • Minneapolis Federal Reserve Bank President said he sees one more rate hike this year.
  • Market players will closely monitor Banxico interest rate decision, US Core Personal Consumption Expenditure (PCE) Price Index this week.

The US Dollar (USD) gains traction for the second consecutive day against the Mexican Peso (MXN) during the early Asian trading hours on Tuesday. A stronger US Dollar and higher US Treasury bond yields supported the pair. USD/MXN currently trades around 17.47, up 0.46% on the day.

Data from statistics agency INEGI showed that Mexico’s headline inflation came in at 4.64% for the first half of September from 4.64% at the end of August. Mexico President Andres Manuel Lopez Obrador stated last week that Banxico was doing well as inflation slows but the central bank should concentrate more on fostering economic development. However, if the rate of inflation eases, Banxico may adjust its monetary policy, and could weigh on the Mexican Peso.

On the USD’s front, the higher for longer rate narrative in the US boosts the Greenback broadly. Early Tuesday, Minneapolis Federal Reserve Bank President, Neel Kashkari stated that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. This, in turn, lifts the USD against the Mexican Peso and acts as a tailwind for the USD/MXN pair.

Later this week, the US CB Consumer Confidence for September and New Home Sales will be due later on Tuesday. The closely watched event will be the US Core Personal Consumption Expenditure (PCE) Price Index on Friday. On the Mexican docket, the Trade Balance for August will be released on Wednesday and Banxico Interest Rate Decision will be scheduled on Thursday.

 

USD/MXN

Overview
Today last price 17.5407
Today Daily Change 0.1457
Today Daily Change % 0.84
Today daily open 17.395
 
Trends
Daily SMA20 17.2013
Daily SMA50 17.0516
Daily SMA100 17.1916
Daily SMA200 17.88
 
Levels
Previous Daily High 17.4542
Previous Daily Low 17.1723
Previous Weekly High 17.2506
Previous Weekly Low 16.9982
Previous Monthly High 17.4274
Previous Monthly Low 16.6945
Daily Fibonacci 38.2% 17.3465
Daily Fibonacci 61.8% 17.28
Daily Pivot Point S1 17.2268
Daily Pivot Point S2 17.0587
Daily Pivot Point S3 16.945
Daily Pivot Point R1 17.5086
Daily Pivot Point R2 17.6223
Daily Pivot Point R3 17.7905

 

 

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