Summary - 200Day MA Underpins USDBRL, Chile Trade Bolsters CLP

MEXICO - Despite USDMXN testing the lower end of its most recent range sub 20.20, the sell-off lost momentum and amid weaker risk sentiment has bounced.

• Three tests this morning of Tuesday's highs at 20.4330 provides nearest notable level.
• Range feels like 20.15-20.50 for now as we battle between recent positive EM theme and short-term bouts of safe haven buying, amid a very light event risk week on the domestic calendar.
• National Hydrocarbons Commission holds extraordinary meeting on Pemex allocation Jiliapa.
• 1900 Local Health Ministry update on Covid-19 outbreak.

BRAZIL - Decent bounce off the lows in USDBRL with 200day MA continuing to support on the downside.

• Fitch affirmed Brazil at 'BB-' and maintained the negative outlook, citing continued concerns surrounding the fiscal trajectory.
• Reports suggest a senior government meeting is to take place today. Financing Renda Cidada remains top of the agenda.

CHILE - Notable performer yesterday following marginally higher GDP prints and a much smaller trade deficit than expected.

• Q3 Trade Balance registered a deficit of just $25mil compared to an estimate of $1.4bil deficit.
• Combined with this the previous surplus of $1.1b was revised up to $2.6b.
• Deadline for investors to submit offers for Chile's sale of $1.8b in 2028 and 2033 nominal BTP bonds.

PERU - Banks noted they have seen a modest pick-up in inflows from leveraged and real money players, suggesting investors are viewing the earlier PEN sell-off as a buying opportunity.

• A further 0.8% gain for PEN echos the sentiment as Centrist leader Sagasti begins to build his cabinet.

ARGENTINA - 1300GMT through 1800GMT Argentina's government will sell CPI-linked and fixed-rate Treasury bonds.