- USD/CHF reverses from weekly tops amid few fresh catalysts.
- Risk tone modestly unchanged as Hong Kong protests continues, absence of US-China news.
- Cautious trading ahead of data from the key Asian economies also plays its role.
USD/CHF fails to carry the previous run-up as it declines to 0.9765 during early Wednesday. The pair earlier flashed the weekly high in reaction to the trade positive headlines from the US.
Having initially announced fresh tariffs on Chinese goods starting from September 01, the US President Donald Trump postponed, via Twitter, the punitive measure on some of the goods till mid-December. It was also mentioned that the US and Chinese diplomats are again discussing trade ahead of September 01 meeting.
Investors reacted positively to the news and quit their prior longs of safe-havens like the Japanese Yen (JPY), Gold and the Swiss Franc (CHF).
However, happy times didn’t last too long as Asian traders concentrated on more than ten-week-old protests at Hong Kong while remaining cautiously ahead of the key wages data from Australia and activity numbers from China.
The global barometer of risk sentiment, the US treasury yield, grew four basis points (bps) on Tuesday but is so far taking rounds to 1.69% by the press time.
July 22 low around 0.9800, followed by 21-day simple moving average (SMA) level near 0.9823, cap the pair’s near-term upside. On the flip side, 0.9690 and 0.9660 can keep the sellers happy for the time being ahead of pushing them to 0.9600 round-figure.