The price of the Dollar falls to lows of the day near 16.55 against the Mexican Peso after the JOLTS job vacancies data

• USD/MXN loses all the ground gained on the day and retreats to a daily low at 16.56.
• The price of the Dollar plummets after the increase in JOLTS job offers in the United States.
• The focus turns to Wednesday, with the ADP for private employment, the ISM for services and Jerome Powell's speech.

USD/MXN started Tuesday's trading above 16.60, and although it gave up some ground below this level in the European open, it managed to advance to a daily high at 16.65 later. Following the opening of Wall Street and the US JOLTS job openings data, the pair lost its gains and fell to a daily low of 16.56.

The Dollar falls sharply after the increase in job vacancies in the United States

The Dollar Index (DXY) has fallen sharply following the JOLTS job openings data, falling to a daily low of 104.68. At the European open, the index hit a nearly five-month high at 105.10.

The US JOLTS job vacancy survey has shown an increase to 8.756 million from the previous 8,748 million, taking into account that the January figure has been strongly revised downwards from 8,863,000. The number of job offers exceeds expectations, since a decrease to 8,740,000 was expected.

On the other hand, the United States has published factory order figures for February, showing an increase of 1.4% compared to the estimated 1%. The rise notably improves the 3.8% drop seen in January. This is the first increase after two consecutive months of falls.

While waiting to digest the data, investors are now awaiting Wednesday's session, as there will be three events that can generate volatility in the Dollar. First, the ADP private employment report for March will be released, which is expected to announce 148,000 new jobs compared to 140,000 in February. The ISM Services PMI will be released later, expected to rise to 52.7 points in March from 52.6 the previous month. Finally, Jerome Powell, president of the US Federal Reserve, will speak at Stanford University, potentially giving clues about future rate cuts.

CME Group's FedWatch tool just updated its forecasts for a first Fed rate cut in June, lowering options to 56.5% from the previous 64%.

USD/MXN Price Levels

With the USD/MXN currently trading above 16.57, falling 0.26% daily, the next support for an extension of the fall is at 16.51, the 2024 minimum recorded on March 27. Below there is intermediate support at 16.47, the low of December 2015. Further down, the containment area is around 16.35, where the lows of September, October and November 2015 meet.

On the upside, a recovery above 16.77, last week's high, is still necessary to advance towards the resistance located at 16.94, the March 19 high. Above I would expect the strong psychological level of 17.00.