- The USD remains on the defensive after softer ADP report and exerts some downward pressure.
- The prevalent risk-on mood undermines CHF’s safe-haven demand and helped limit the downside.
- Investors now eye US ISM non-manufacturing PMI for some meaningful trading opportunities.
The USD/CHF pair extended its sideways consolidative price action and remained confined in 30-40 pips trading range, around mid-0.9800s.
The pair traded with a mild positive bias for the second consecutive session, albeit a combination of diverging forces failed to provide any meaningful impetus and led to a subdued action through the early North-American session on Wednesday.
The ongoing slide in the US Treasury bond yields kept the US Dollar bulls on the defensive and was seen as one of the key factors that failed to assist the pair to add to Monday’s positive move or build on its recent recovery move from yearly lows.
On the economic data front, the latest ADP report showed that the US private-sector employers added 102K new jobs in June – much better than the previous month’s upwardly revised reading of 41K (27K reported previously) but was still below 140K expected.
Meanwhile, the downtick remained cushioned amid the prevailing positive mood around equity markets, pointing to improving global risk sentiment and which tends to undermine demand for traditional safe-haven currencies – including the Swiss Franc.
Moving ahead, Wednesday’s US economic docket also features the release of ISM non-manufacturing PMI, which might influence the USD price dynamics and will be looked upon to grab some meaningful short-term trading opportunities.
Technical levels to watch
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