USD/TRY tumbles to fresh lows near 5.6700

• USD/TRY challenges multi-week lows near 5.67.
• Turkey Capacity Utilization eased a tad in September.
• US-China trade developments remain in the limelight.

The Turkish Lira is extending the upside momentum so far this week and is now dragging USD/TRY to fresh lows in the 5.67 area, at shouting distance from 5-week lows.

USD/TRY looks to trade, data

The pair is down for the second session in a row following a positive start fo the week for the Turkish currency, which is flirting with the key support around the 55-day SMA in the 5.6730 region.

TRY, and the rest of the EM FX space, looks supported by rising hopes of a positive outcome at the imminent US-China trade talks, expected in the US in early October.

However, the Lira is expected to remain under scrutiny in the next hours, as investors will closely follow the meeting between President Trump and President Erdogan at the Annual UN General Assembly. The meeting will likely have the issue of a safe-zone in Northern Syria on top of the agenda.

In the docket today, Turkish Capacity Utilization eased a tad to 76.3% in September (from 76.6%) and the Manufacturing Confidence dropped to 98.8 for the same period (from 102.5), all ahead of the Economic Sentiment gauge due on Friday.

Later in the day, the focus of attention will be on the IS Consumer Confidence tracked by the Conference Board for the current month. In addition, US house prices measured by the S&P/Case-Shiller index will also be published.

USD/TRY key levels

At the moment the pair is losing 0.57% at 5.6821 and faces the next support at 5.6732 (low Sep.24) seconded by 5.6483 (monthly low Sep.12) and then 5.6181 (200-day SMA). On the upside, a surpass of 5.7350 (21-day SMA) would aim for 5.77628 (100-day SMA) and finally 5.7913 (high Sep.11).