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Forex - USD/CHF plunges to 7-month low as risk aversion climbs

Published 08/31/2010, 04:28 AM
USD/CHF
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EUR/CHF
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Investing.com – The U.S. dollar was down against the Swiss franc on Tuesday, plunging to a fresh 7-month low, as risk aversion weighed heavily on markets amid ongoing fears over the global economic recovery.

USD/CHF hit 1.0198 during European morning trade, the pair’s lowest since January 15; the pair subsequently consolidated at 1.0201, shedding 0.60%.

The pair was likely to find support at 1.0179, the low of January 15, and resistance at 1.0308, Monday’s high.

On Monday, a report from the U.S. Bureau of Economic Analysis showed that while U.S. personal income improved in line with expectations in July, disposable income dropped for the first time since January.

A separate piece of data also showed that manufacturing activity in the Dallas area declined sharply in August, adding to fears over the U.S. economic recovery.

The Swissy was also up against the euro, with EUR/CHF shedding 0.43% to hit 1.2937.

Later in the day, the U.S. was to produce key data on consumer confidence and manufacturing activity in Chicago, while the Federal Reserve was to release the minutes of its previous open market committee meeting.

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