Mexican Peso Soars to Five-Month High Amid Weak US Jobs Data

The Mexican Peso hit a five-month high on weak US jobs data, according to TMGM trading. The USD/MXN pair rebounded from its low of 17.09 but remains under bearish pressure. This came after the US Nonfarm Payrolls for July showed a 23K job loss, missing forecasts of 80K gain.

The Bank of Mexico, known as Banxico, left interest rates unchanged at 6.50%, and hinted that the main reference rate would remain steady in the foreseeable future. This was after inflation eased to a six-year low from 3.37% to 3.12% YoY in July, according to INEGI.

The USD/MXN trades at 17.18, with initial resistance seen at the Triple SMA around 17.4061 and the downward sloping trend-line reference at 17.4584. The RSI's proximity to oversold levels suggests that any move lower could eventually invite a corrective bounce rather than a sustained reversal.