Investing.com - The U.S. dollar climbed to a 12-day high against the Swiss franc on Tuesday, as concerns over the outlook for global growth intensified after data confirmed that the euro zone’s economy contracted in the fourth quarter of 2011.
USD/CHF hit 0.9181 during European morning trade, the pair’s highest since February 17; the pair subsequently consolidated at 0.9175, gaining 0.56%.
The pair was likely to find support at 0.9105, Monday’s low and resistance at 0.9250, the high of February 15.
Eurostat said that the euro zone’s gross domestic product shrank by a seasonally adjusted 0.3% in the fourth quarter, in line with expectations and unchanged from a preliminary estimate.
Annualized GDP contracted at a rate of 0.7%, also in line with expectations and unrevised from an initial estimate.
The data fuelled concerns over the outlook for global growth, coming one day after Chinese Premier Wen Jiabao said his government will target expansion of 7.5% in 2012, the lowest GDP target in eight years.
Investors also remained jittery ahead of the March 8 deadline for Greece’s private creditors to sign on to a EUR106 billion debt swap deal, a requirement for Athens to tap a recently approved EUR130 billion bailout fund.
Earlier in the day, Greek finance minister Evangelos Venizelos strongly urged private sector creditors to take part in the debt swap deal and warned that it was the best offer they would receive.
The Swissie was fractionally lower against the euro, with EUR/CHF inching up 0.02% to hit 1.2060, but fell sharply against the broadly stronger yen, with CHF/JPY tumbling 1.28% to hit 88.22.
Earlier Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.5% in a widely expected decision, but failed to outrule the possibility of further rate cuts if global economic conditions weaken going forward.
USD/CHF hit 0.9181 during European morning trade, the pair’s highest since February 17; the pair subsequently consolidated at 0.9175, gaining 0.56%.
The pair was likely to find support at 0.9105, Monday’s low and resistance at 0.9250, the high of February 15.
Eurostat said that the euro zone’s gross domestic product shrank by a seasonally adjusted 0.3% in the fourth quarter, in line with expectations and unchanged from a preliminary estimate.
Annualized GDP contracted at a rate of 0.7%, also in line with expectations and unrevised from an initial estimate.
The data fuelled concerns over the outlook for global growth, coming one day after Chinese Premier Wen Jiabao said his government will target expansion of 7.5% in 2012, the lowest GDP target in eight years.
Investors also remained jittery ahead of the March 8 deadline for Greece’s private creditors to sign on to a EUR106 billion debt swap deal, a requirement for Athens to tap a recently approved EUR130 billion bailout fund.
Earlier in the day, Greek finance minister Evangelos Venizelos strongly urged private sector creditors to take part in the debt swap deal and warned that it was the best offer they would receive.
The Swissie was fractionally lower against the euro, with EUR/CHF inching up 0.02% to hit 1.2060, but fell sharply against the broadly stronger yen, with CHF/JPY tumbling 1.28% to hit 88.22.
Earlier Tuesday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 4.5% in a widely expected decision, but failed to outrule the possibility of further rate cuts if global economic conditions weaken going forward.