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Forex - USD/CHF eases up to daily high as risk aversion wanes

Published 04/13/2011, 06:01 AM
USD/CHF
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EUR/CHF
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Investing.com – The U.S. dollar edged higher against the Swiss franc on Wednesday, rebounding from a one-month low as risk aversion waned, dampening demand for the safe haven franc.

USD/CHF hit 0.8992 during European morning trade, the daily high; the pair subsequently consolidated at 0.8984, easing up 0.16%.

The pair was likely to find support at 0.8941, Tuesday’s low and a one-month low and resistance at 0.9074, Tuesday’s high.

Earlier in the day, Switzerland’s Federal Statistical Office said the producer and import price index rose in line with expectations in March, gaining 0.4% year-on-year after a 0.5% increase in February.

On a monthly basis, the index rose 0.4%, compared to 0.2% in the previous month.

The report said that the prices of domestically produced goods were slightly higher by 0.2% month-on-month. Meanwhile, the import price index rose 0.9%, led by higher costs of petroleum and petroleum products.

Year-on-year, the producer price index edged down 0.1%, while the import price index advanced 1.6%.

The Swissie was also lower against the euro, with EUR/CHF climbing 0.30% to hit 1.3025.

Later in the day, the U.S. was to publish government data on retail sales and crude oil inventories, while the Federal Reserve was to publish its Beige Book.

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