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5 Mar 2014
South America EM Express: Mexico Consumer Confidence unchanged in January at 84.5
FXStreet (Łódź) - In Venezuela students and anti-government protesters continued their demonstrations against Hugo Chavez's successor Nicolas Maduro on Tuesday, on the eve of the late president's death anniversary.
Rallies against high levels of violent crime and the shortage of basic goods, which broke out at the beginning of the year and resulted in 18 people killed so far in clashes with National Guard security forces, have continued into March. It is not expected however that the protests escalate as much as in case of the current Ukraine crisis, which led to a change of government.
Economic data
On Wednesday the Central Bank of Chile released its monthly indicator of production in all of the economic sectors in Chile for January, which came in at 1.4%, down from the 2.6% growth seen the previous month.
Mexico published Consumer Confidence numbers for February, which remained unchanged from January's 84.5 result, despite expectations of a higher reading. Seasonally adjusted data was up at 86 from the previous reading of 83.4. Without a marked improvement and as recent data was rather unfavorable, this could influence the country's central bank Banxico's monetary policy decision due on March 21.
Technicals
The USD/BRLdaily FXStreet Trend Index is strongly bearish, with the OB/OS Index neutral. RSI is neutral at 41.6499 at the last close. Daily 2-StDev Volatility Bandwidth is expanding at 267 pips, with ATR (14) at 255 pips. The 1D 200 SMA is at 2.2910, while the 1D 20 EMA is at 2.3649.
The USD/MXN daily FXStreet Trend Index is slightly bullish, with the OB/OS Index neutral. RSI is neutral at 49 at the last close, and has headed lower to 36.9319 so far today. Daily 2-StDev Volatility Bandwidth is shrinking at 370 pips, with ATR (14) at 1024 pips. The 1D 200 SMA is at 13.0261, while the 1D 20 EMA is neutral at 13.2807.
According to the BBH Global Currency Strategy Team: “For USD/MXN, support seen near 13.20, while resistance seen near 13.40 and then 13.60.”
Rallies against high levels of violent crime and the shortage of basic goods, which broke out at the beginning of the year and resulted in 18 people killed so far in clashes with National Guard security forces, have continued into March. It is not expected however that the protests escalate as much as in case of the current Ukraine crisis, which led to a change of government.
Economic data
On Wednesday the Central Bank of Chile released its monthly indicator of production in all of the economic sectors in Chile for January, which came in at 1.4%, down from the 2.6% growth seen the previous month.
Mexico published Consumer Confidence numbers for February, which remained unchanged from January's 84.5 result, despite expectations of a higher reading. Seasonally adjusted data was up at 86 from the previous reading of 83.4. Without a marked improvement and as recent data was rather unfavorable, this could influence the country's central bank Banxico's monetary policy decision due on March 21.
Technicals
The USD/BRLdaily FXStreet Trend Index is strongly bearish, with the OB/OS Index neutral. RSI is neutral at 41.6499 at the last close. Daily 2-StDev Volatility Bandwidth is expanding at 267 pips, with ATR (14) at 255 pips. The 1D 200 SMA is at 2.2910, while the 1D 20 EMA is at 2.3649.
The USD/MXN daily FXStreet Trend Index is slightly bullish, with the OB/OS Index neutral. RSI is neutral at 49 at the last close, and has headed lower to 36.9319 so far today. Daily 2-StDev Volatility Bandwidth is shrinking at 370 pips, with ATR (14) at 1024 pips. The 1D 200 SMA is at 13.0261, while the 1D 20 EMA is neutral at 13.2807.
According to the BBH Global Currency Strategy Team: “For USD/MXN, support seen near 13.20, while resistance seen near 13.40 and then 13.60.”