- USD continues to outperform rivals on Thursday on the back of strong data.
- US Dollar Index advances to 10-day highs above 94.70.
- Coming up: FOMC Chairman Jerome Powell speech.
The USD/CHF pair extended its upside in the early trading hours of the NA session as the U.S. data helped the greenback preserves its bullish momentum it gathered following yesterday’s FOMC event. At the moment, the pair is trading at 0.9745, adding 0.85% on the day.
The U.S: Census Bureau on Thursday reported that after declining by 1.2% in July, durable goods orders increased by 4.5% in August to surpass the analysts’ expectation of 2%. More importantly, the third estimate of the second quarter real-GDP growth came in at 4.2% to meet the market consensus. With the initial reaction to the data, the US Dollar Index, which tracks the greenback against a basket of six major currencies, rose to its highest level since September 17 at 94.77 and was last seen up 0.45% on the day at 94.70.
Meanwhile, major equity indexes in the U.S. started the day in the positive territory with the Nasdaq Composite Index leading the way to reflect an improved sentiment in the session that may be providing an additional boost to the pair.
Later in the day, investors will be paying a close attention to the FOMC Chairman Jerome Powell’s speech at 20:30 GMT.
Technical levels to consider
With a decisive break above 0.9750 (200-DMA), the pair could target 0.9800 (psychological level) and 0.9850 (100-DMA). On the downside, supports are located at 0.9665 (20-DMA), 0.9580 (Sep. 24 low) and 0.9500 (psychological level).
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