The Mexican Peso strengthened on Tuesday, following a period of weakness in emerging market assets. The rebound was driven by a combination of factors, including improved economic data from China and a shift in market sentiment regarding interest rate expectations.

Key Factors:

• Emerging Market Weakness: The Mexican Peso was impacted by a broader sell-off in emerging market assets due to concerns about global interest rates.
• US Election Uncertainty: The close race between Donald Trump and Kamala Harris has created uncertainty and impacted the Mexican Peso.
• US Interest Rates: Expectations for a less aggressive Federal Reserve have supported the US Dollar and put pressure on the Mexican Peso.
• Economic Data: Stronger-than-expected Chinese economic data and the upcoming release of Mexican Economic Activity data could provide further support for the Peso.

Technical Analysis:

• The USD/MXN pair is trading near the 20.00 resistance level.
• A break above 20.00 could lead to further gains towards the September 10 high.
• The Moving Average Convergence Divergence (MACD) indicator is showing a mildly bullish outlook.