FX Commentary - Tuesday, March 14

 Photo by Claudio Schwarz on Unsplash
 

CHF Stays Strong

The Swiss Franc has been the best performer again today over early European trading. The global equities rout we’re seeing on the back of the SVB collapse is driving a wave of safe-haven demand for the Franc. Additionally, the SNB retains one of the more hawkish outlooks among G10 central banks currently, which is also helping keep the currency supported. With traders pairing back their rate projections for the Fed and the ECB on the back of recent market turmoil, the Franc looks poised to gain further as it attracts greater capital inflow.
 

AUD Under Pressure

AUD has been among the weaker performers today. The risk aversion sweeping across markets has hit the high-beta currency hard and makes AUDCHF vulnerable to further losses near-term. With retail traders overwhelmingly long the pair, there is plenty of room for the current downtrend to extend further in the coming session. One potential catalyst is today’s US CPI data. If inflation is seen coming in above forecasts this will heighten global uncertainty, putting further pressure on stocks and risk currencies and driving greater safe-haven demand for the Franc.
 

Technical Views

AUDCHF

(Click on image to enlarge)

The sell-off in AUDCHF has been framed by a well-defined bear channel. With price now turning lower again within the channel, the focus is on a break of the current .6029 lows targeting a move down to .5974 next. Momentum studies are flat for now though a break of current shows should encourage fresh momentum to drive the move further. 


More By This Author:

Credit Suisse Commentary
FX Commentary - Monday, March 13
Metals Rally As USD Falls Back

Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with