Investing.com - The dollar pushed higher against the Swiss franc on Tuesday as market sentiment was boosted by upbeat economic data out of China and as concerns over a possible U.S. military strike on Syria abated.
USD/CHF hit 0.9347 during European morning trade, the session high; the pair subsequently consolidated at 0.9343, gaining 0.20%.
The pair was likely to find support at 0.9300, Monday’s low and a one-week low and resistance at 0.9390, Monday’s high.
Risk appetite was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after U.S. President Barack Obama said he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.
The dollar remained on the back foot after the latest U.S. nonfarm payrolls report on Friday showed that the economy added slightly fewer jobs than expected in August.
The soft data raised some doubts over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Elsewhere, the dollar was higher against the yen, with USD/JPY advancing 0.48% to 100.07 and was slightly higher against the euro, with EUR/USD slipping 0.09% to 1.3242.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.485% compared to 4.481% for Spain.
USD/CHF hit 0.9347 during European morning trade, the session high; the pair subsequently consolidated at 0.9343, gaining 0.20%.
The pair was likely to find support at 0.9300, Monday’s low and a one-week low and resistance at 0.9390, Monday’s high.
Risk appetite was boosted after reports on industrial production and retail sales from China added to signs that the world’s second largest economy is recovering from a slowdown.
Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production rose more than forecast last month.
Market sentiment was also bolstered after U.S. President Barack Obama said he would put plans for a military strike against Syria on hold if the country agrees to a Russian proposal to place its chemical weapons under international control.
The dollar remained on the back foot after the latest U.S. nonfarm payrolls report on Friday showed that the economy added slightly fewer jobs than expected in August.
The soft data raised some doubts over whether the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program at its upcoming policy meeting on September 17-18.
Elsewhere, the dollar was higher against the yen, with USD/JPY advancing 0.48% to 100.07 and was slightly higher against the euro, with EUR/USD slipping 0.09% to 1.3242.
In the euro zone, data on Tuesday showed that the recession in Italy is deeper than had been previously thought.
The economy contracted by 0.3% in the second quarter, worse than the initial estimate of a 0.2% contraction, bringing the annualized rate of contraction to 2.1% from the initial estimate for a 2% contraction.
Meanwhile, Italian government borrowing costs rose above Spain's for the first time in 18 months on Tuesday, with Italian 10-year bond yields trading at 4.485% compared to 4.481% for Spain.