The Mexican peso continues to appreciate and approaches a key resistance level.

The Mexican peso is trading with gains this Wednesday morning. The local currency is gaining ground against a weakening dollar in a market that will be attentive to the testimony of Federal Reserve Chairman Jerome Powell before Congress.

The exchange rate stands at the level of 16.8569 units. Compared to yesterday’s rate of 16.9489 units per dollar at the official close of the Bank of Mexico (Banxico), the movement represents an advance of 9.2 cents or 0.54 percent for the currency.

The price of the dollar is fluctuating within an open range, with a maximum of 16.9625 units and a minimum of 16.8565 units. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six reference currencies, is down 0.30% at 103.49 points.

As the exchange rate has breached the support level of 16.90 pesos per dollar, the probability of the peso continuing to appreciate towards the key support level of 16.80 pesos per dollar has increased, last seen on January 8th.

Investors will be closely monitoring Federal Reserve Chairman Jerome Powell’s remarks before the House Financial Services Committee on Wednesday. Any mention of interest rate cuts could impact the exchange rate.

On the other hand, in labor data, the private sector in the United States experienced employment growth in February, but at a slower pace than anticipated by economists. Companies added 140,000 jobs during the month.

Traders are keeping an eye on the release of the Job Openings and Labor Turnover Survey (JOLTS), the Fed’s Beige Book, and speeches by Fed members today, including Mary Daly and Neel Kashkari.