USD/CHF consolidates below 0.9070 amid risk aversion
- USD/CHF prints minute losses on Thursday in the Asian session.
- US Dollar Index remains steady above 92.20 despite softer economic data.
- The Swiss franc remains in demand amid market uncertainty on its safe-haven appeal.
After touching the high of 0.9076 in the overnight session, USD/CHF treads water in the Asian trading hours on Thursday. The pair hovers in a narrow trade band with no meaningful traction.
At the time of writing, USD/CHF is trading at 0.9065, down 0.01% for the day.
The appreciative move in the US dollar sponsored the move in the pair. The US dollar index rebounds above 92.20 with 0.20% gains.
The US ISM Non-Manufacturing Purchase Manager Index (PMI) rose to 64.1 in July, much above the market forecasts of 60.5 whereas the ADP employment rate for July reported that private business hired 330K workers, well below the market expectations of 695K rise.
Meanwhile, US Federal Reserve Vice Chair Richard Clarida said on Wednesday that the central bank could start to reduce its massive asset-buying program later this year.
On the other hand, the Swiss franc gained as investors risk appetite reduced on the spread of the Delta variant and its possible impact on the global recovery.
In addition to that, the Swiss Consumer Confidence jumped 7.8 in Q3. It is the highest reading since 2010.
As for now, traders are waiting for the US Initial Jobless Claims and Balance of Trade data to gauge the market sentiment.
USD/CHF additional levels