USDMXN retreat for the third day in a row as the correction from all-time highs continue. On the data front, Mexico Industrial Output came in at -0.6%, below the market consensus of 0.1% in February, the yearly reading of Industrial Output came in at -1.9% also below the expectations of -1.6%. Yesterday, the Mexico 12-Month Inflation came in at 3.25%, below the forecasts of 3.47% in March, the Headline Inflation came in at -0.05% below the expectations of 0.2%, while the Core Inflation came in at 0.29%, beating the estimates of 0.27%.
Mexican peso attracts some bids after the Mexican government announced a relief package to fight the coronavirus economic impact, but also warned that the stimulus plan would call for massive borrowing.
USDMXN is 0.55% lower at 24.1779 close to daily lows as the pair gave back early gains. Today’s pullback supported by the rise in crude oil price. The technical picture for the pair is bullish, and a test of the recent highs can’t be ruled out.
On the downside, the first support for USDMXN will be met at 24,1622 today’s low. The next support for USDMXN stands at 23.8249 the low from yesterday’s session. More bids might emerge at 23.6676 the low from April 1.
On the upside, initial resistance will be met at 24.7929 the daily top. A move above might drive the pair to all-time highs at 25.7797. In case the bids persist then the next resistance stands at 26.0000 psychological mark.