USDMXN retreat for the second consecutive session as risk-on sentiment prevails after the partial opening of the economies around the globe.
On the data front, the U.S. Services PMI slumped to 26.7 in April below the expectations of 27, and below the March reading of 39.8. The PMI Composite came in at 27, below the expectations of 27.4. Overall output contracted in April at the fastest pace since data collection began in October 2009.
The U.S. ISM Non-Manufacturing PMI came in at 41.8 topping the forecasts of 36.8 in April. The ISM Non-Manufacturing New Orders Index registered at 32.9, well below the expectations of 58.3 in April. The ISM Non-Manufacturing Employment Index rei in at 30 below the expectations of 51.6. ISM Non-Manufacturing Prices Paid came in at 55.1, above the expectations of 50.3 in April.
The U.S. Trade Balance registered in at $-44.4B below the forecasts of $-44B in March. The Redbook Index dipped from previous -11.8% to -12.6% on May 1, the yearly reading for the Redbook Index fell from previous -8.1% to -9.3%.
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USDMXN is 0.99% lower at 23.8409 as the second attempt to yearly highs stalled below the 25.00 area. The technical outlook remains bullish for the pair despite the recent correction, and higher levels might be on the cards. Bulls are in driver’s seat as long as the pair trades above the 50-day moving average.
On the downside, the initial support for USDMXN will be met at 23,8088 today’s low. The next support area for the pair stands at 23.6252 the low from April 17. More bids might emerge at 23.0768 the 50-day moving average.
On the other hand, the initial resistance stands at 24.1700 the daily top. A break above might drive USDMXN pair to 24.8648 the high from yesterday session. In case the USDMXN breaks higher, then the next resistance stands at 25.2994 the high from April 24.