USDMXN At Daily Highs After Better JOLTS Jobs Openings

Summary:

USDMXN jumps to daily highs after better than expected new JOLTS jobs openings. The United States JOLTS Job Openings registered in at 5.889M, beating the

USDMXN jumps to daily highs after better than expected new JOLTS jobs openings. The United States JOLTS Job Openings registered in at 5.889M, beating the expectations of 4.91M in June, the May openings were at 5.37 million. The positive figure added to better than expected NFP data on Friday and the better initial jobless claims the previous day, showing that the U.S. economy is recovering and is creating new jobs. Now the U.S. economy has recovered almost 44% of the jobs lost during the lockdown.

Market Reaction To JOLTS Jobs Opening

USDMXN jumped to daily highs after the news and is trading 0.61% higher at 22.5149.

Now investors will focus on Central Bank of Mexico interest rates decision on Thursday, and economists now expect a cut of 50 to 75 basis points. The interest rates in Mexico is at 5% while the inflation rose to 3.3% in the previous month. Mexico economy got a significant hit during the coronavirus and contracted by 17.30% in the second quarter.

The recent rally in crude oil prices helped the Mexican peso, but that is not the case today as despite rising oil prices the peso is under pressure against the USD.

USDMXN Price Analysis

USDMXN is 0.60% higher at 22.5143, keeping the positive momentum alive as long as it stays above the 50-day moving average.

Now the pair would face the intraday resistance at 22.5428 the daily top. Above that, the next hurdle stands at 22.6680 the high from August 5. The next supply zone is at 22.9176 the high from August 4.

On the flip side, immediate support stands at 22.3527 today’s low. More bids would emerge at 22.3075 the low from August 6. The next support zone is at 21.9655 the low from July 31 trading session.