“¢ USD selling pressure aggravated after today’s disappointing US data.
“¢ Reviving safe-haven demand underpins CHF and accelerates the downfall.
“¢ A goodish pickup in the US bond yields does little to lend any support.
The USD/CHF pair kept losing ground through the early North-American session and refreshed multi-month lows in the last hour.
The already weaker US Dollar lost some additional ground following today’s disappointing release of the Empire State Manufacturing Index, coming in at 19 points for September as compared to 25.6 previous and 23.0 anticipated.
This against the backdrop of escalating US-China trade tensions, which triggered a fresh wave of global risk aversion trade on Monday, benefitted the Swiss Franc’s safe-haven appeal and further collaborated to the pair’s slide to an intraday low level of 0.9622.
According to the latest Bloomberg report, the Trump administration could announce its decision to impose a 10% tariff on $200 billion worth of Chinese imports as early as Monday and kept weighing on investors sentiment.
Meanwhile, a goodish pickup in the US Treasury bond yields, with yields on the benchmark 10-year bond rising to 4-month highs, did little to ease the prevalent USD selling pressure and stall the pair’s downfall to the lowest level since mid-April.
Technical levels to watch
A follow-through selling has the potential to continue dragging the pair further towards 0.9600 handle, below which the fall could further get extended towards 0.9575-70 horizontal support.
On the flip side, any attempted recovery moves might now confront immediate resistance near mid-0.9600s and any subsequent up-move seems more likely to remain capped near the 0.9670-75 supply zone.
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