Chilean Peso Gains Ground as Technical and Economic Forces

The Chilean peso advanced against the US dollar on June 24, 2025, as official charts and central bank data confirmed a decisive move below key resistance levels.

The USD/CLP pair closed at 936.34, down 1.15% from the previous day, erasing gains made in the prior session and signaling renewed strength for the peso.

The technical picture shifted after the peso failed to sustain a breakout above the 50-day and 200-day moving averages on the 4-hour chart. Sellers overwhelmed buyers at these levels, pushing the exchange rate sharply lower.

The daily chart confirms this reversal, with the price closing below both the 50-day and 200-day moving averages, and well beneath the 940.38 and 938.56 resistance bands.

The Relative Strength Index (RSI) on the daily chart sits at 47.29, indicating neutral momentum and room for further movement in either direction.

Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains negative, with the signal line below the baseline, reinforcing the bearish momentum.

Bollinger Bands on both the daily and 4-hour charts show the pair moving toward the lower band, reflecting increased volatility and a market leaning toward oversold conditions.

However, the absence of a spike in volume suggests that the move, while significant, has not yet triggered panic selling or a dramatic shift in market participation.

Fundamentally, the peso’s advance comes as Chile’s economy continues to outperform expectations. The Central Bank of Chile kept its policy rate steady at 5% in June, citing robust export growth and resilient services.

However, job creation continues to lag, and unemployment is edging higher. Inflation moderated to 4.4% in May, with the central bank projecting a return to its 3% target by the first half of 2026.

The latest Monetary Policy Report notes that external risks, such as US trade policy shifts and Middle East tensions, have not yet materially impacted Chile’s trade flows or economic outlook.

Copper, Chile’s chief export, remains a key pillar for the peso. The state copper commission, Cochilco, recently raised its 2025 price forecast to $4.30 per pound, citing improved global demand following a US-China tariff agreement.

This optimism supports the peso, as copper revenues bolster the nation’s current account and fiscal position. Despite these positives, official reports highlight concerns over sluggish private investment and rising labor costs.

These factors could temper growth in the coming quarters. The central bank remains cautious, signaling that while further rate cuts are possible, global uncertainty could delay monetary easing.

In summary, the peso’s rally reflects a convergence of technical breakdowns and solid economic fundamentals. The market will watch closely whether the peso can hold below 940 in the days ahead, as traders ***ess both domestic resilience and evolving global risks.