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Forex - USD/CHF hits six-week low as sentiment strengthens

Published 04/10/2013, 05:45 AM
Updated 04/10/2013, 05:46 AM
USD/CHF
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EUR/CHF
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Investing.com - The U.S. dollar fell to a six-week low against the Swiss franc on Wednesday, as Chinese trade data supported market sentiment, while markets awaited minutes from the Federal Reserve’s latest policy meeting later in the day.

USD/CHF hit 0.9296 during European morning trade, the pair's lowest since February 28; the pair subsequently consolidated at 0.9310, slipping 0.17%.

The pair was likely to find support at 0.9232, the low of February 25 and resistance at 0.9366, Tuesday's high.

Market sentiment strengthened after data showed that China posted an unexpected trade surplus in March as imports rose sharply to outstrip exports.

Official trade data showed that Chinese imports rose 14.1% from a year earlier in March, blowing past expectations for a 6% increase and following a decline of 15.2% in February.

The data helped eased concerns over weakening domestic demand in the world’s second largest economy.

Meanwhile, investors were waiting to see if the U.S. central bank discussed the possibility of an earlier-than-expected end to its quantitative easing program at its March meeting, after examining the possibility at its previous two meetings.

The Swissie was steady against the euro with EUR/CHF dipping 0.05%, to hit 1.2194.

The euro remained supported as expectations that investors would move away from Japanese government bonds into higher yielding assets pushed bond yields lower across the euro zone.


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