Recent US data points to some moderation in growth rebound momentum and this reinforces our bias for Fed to be patient in its pace of policy normalisation
Mexico's peso rose 0.1% with the benchmark interest rate expected to be hiked by 25 basis points to 4.50% as inflation remains well above policymakers' target level
Brazil's real rose as much as 1.2% before trading flat, while Mexico's peso rose almost 1%. Chile's peso firmed 1.1%, while Peru's sol snapped a three-day losing streak.
Manufacturing activity in Brazil hit four-month highs in June, PMIs showed, while Chile's economic activity jumped a better-than-expected 18.1% in May.
The real and Chile's peso dropped up to 1% each, with the peso giving up gains of as much as 0.7%. Mexico's peso fell 0.4%.
Brazil's real meanwhile slipped 0.7%. The country's monetary policy committee Copom is due to release its decision after the Fed on Wednesday. A 75 basis-point hike is expected as inflation is well above the central bank's target.
Brazil's real bucked the trend, erasing early losses to rise 0.4%. The currency extended gains to a third straight session with iron ore prices rising. Shares in iron ore miner Vale rose 0.3% and were among top gainers on Sao Paulo's main stocks index.