- AUD/CHF has taken 50-DMA support at 0.7373 and bounced higher.
- Momentum studies are bullish, decisive break above trendline eyes 200-DMA at 0.7496.
- On the downside, we see weakness on fall below 50-DMA at 0.7370. Test of 0.73 (23.6% Fib) then likely.
- RBA June monetary policy meeting minutes largely unchanged, shed little light on new details.
- RBA remains upbeat on the global economy, states that forward looking labour indicators are positive but low wages growth continue to restrict consumption.
- Switzerland’s State Secretariat for Economic Affairs (SECO) in its quarterly economic forecasts report lowered 2017 GDP growth forecasts.
- Swiss government sees 2017 GDP growth at 1.4% vs 1.6% prev, 2017 inflation at 0.5% as prev, 2018 GDP 1.9% as prev and 2018 inflation 0.2% vs 0.3% prev.
- CHF largely muted on SECO’s forecasts but could appreciate sharply if EU debt crisis flares up again or situation in banking sector worsens significantly.
Support levels - 0.7398 (38.2% Fib of 0.7807 to 0.7147 fall), 0.7377 (5-DMA), 0.7370 (50-DMA)
Resistance levels - 0.7435 (trendline), 0.7476 (50% Fib), 0.7496 (200-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-CHF-breaks-above-50-DMA-hovers-around-074-handle-bias-higher-759805) is approaching TP1.
Recommendation: Stay long for 0.7495/ 0.75080.7550
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 124.064 (Bullish), while Hourly CHF Spot Index was at -26.2188 (Neutral) at 0930 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
