USDCHF Movement
For the 24 hours to 23:00 GMT, the USD declined 0.21% against the CHF and closed at 0.9106. However, the gains in the Swiss Franc were kept in check after the Swiss National Bank (SNB) kept its ceiling on the currency at 1.20 per Euro and vowed to defend it with unlimited currency interventions. The Swiss National Bank (SNB) also kept its benchmark interest rate unchanged at 0%, broadly in-line with market expectation.
Separately, an official data in Switzerland showed that the nation’s trade surplus declined to a level of CHF1,853.0 million in August, less than analysts’ call for a decline in trade surplus to CHF1,475.0 million and compared to a surplus of CHF2,490.6 million registered in the previous month. Additionally, the Swiss State Secretariat for Economic Affairs (SECO), in its forecast report, stated that the Swiss economy should benefit from strong domestic demand and should see a further recovery as the outlook for the Euro-zone brightens. The agency said that the country is now expected to achieve 1.8% growth in 2013, up from the 1.4% forecast just three months ago,
In the Asian session, at GMT0300, the pair is trading at 0.9105, with the USD trading tad lower from yesterday’s close.
The pair is expected to find support at 0.9087, and a fall through could take it to the next support level of 0.9068. The pair is expected to find its first resistance at 0.9127, and a rise through could take it to the next resistance level of 0.9148.
Amid lack of economic releases in Switzerland, traders are eyeing global economic news for further direction.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
