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Free AccessUSDBRL In Close Proximity To Significant 5.4750 Resistance
- USDBRL remains in close proximity of the Aug/Sep highs following a shaky start to the week for the local currency.
- It is worth noting the recent central bank action with officials quick on announcing an intervention program to offset year-end demand tied to hedge adjustments, as well as auctioning an extra 10,000 FX swap contracts on Sept. 30 when the currency was close to breaching the 5.48 level.
- If the pair were to hold below this resistance, initial support resides at the 50-day EMA around 5.26.
- A break of the 5.4759 highs would indicate a resumption of the bullish uptrend and represent the highest levels traded since May this year, potentially setting up a larger move to significant resistance around 5.80.
- Today's Data includes industrial production figures for August which may provide new insight on economic activity strength:
- 1300BST/0800ET: Aug. Industrial Production YoY, est. 0%, prior 1.2%
- 1300BST/0800ET: Aug. Industrial Production MoM, est. -0.3%, prior -1.3%
- 1400BST/0900ET: Sept. Markit Brazil PMI Composite, prior 54.6
- 1400BST/0900ET: Sept. Markit Brazil PMI Services, prior 55.1
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.