USDMXN
USDMXN rebounds today after the greenback gets a hand from better U.S. economic data. The U.S. Durable Goods Orders registered in at 11.2% well above the estimates of 4.3% in July. The Durable Goods Orders ex-Defense rose to 9.9% in July from the previous 9.2%. The Durable Goods Orders ex-Transportation came in at 2.4% also above the estimates of 2%.
The Mexican GDP dropped by 17.1% in the second quarter marking the worse contraction in history. The annualized GDP fell by 18.1% in the second quarter.
Despite the significant economic data from Mexico and the USA the USDMXN trades in a narrow trading range as investors wait for the Jerome Powell’s speech in the annual symposium in Jackson Hole. Economists want to see if the Fed will increase the inflation target and any signal for the future monetary policy path.
USDMXN is 0.04% higher at 21.8960 in a quiet trading session that adds nothing new to the technical picture. Bears are in control of USDMXN for the short term as long as the pair trades below the 50-day moving average.
Bulls would face minor resistance at 21.9853 today’s high. The next hurdle for USDMXN is at 22.0267 the top from yesterday’s trading session. More selling pressure would be met at 2.1831 the high from August 21.
On the other hand, support for USDMXN stands at 21.8780 the daily low. A break below might test 21.6849 the low from June 10. Next critical support for the pair would be met at 21.4417 the 200-day moving average.
