Forex Pros – The U.S. dollar was slightly lower against the Swiss franc on Tuesday, after official data showing that Chinese inflation rose more slowly than expected in January saw a modest improvement in risk appetite.
USD/CHF hit 0.9682 during European morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 0.9691, dipping 0.09%.
The pair was likely to find support at 0.9573, Thursday’s low and resistance at 0.9775, Friday’s high and a one-month high.
Earlier in the day, China’s statistics bureau said consumer prices rose 4.9% last month from a year earlier, compared with a 4.6% gain in December, disappointing expectations for a 5.4% increase.
The lower-than-expected number eased concerns over further monetary tightening by China’s central bank.
Sentiment was also helped after the minutes of the Reserve Bank of Australia’s February policy meeting said “there had been a stronger tone to the data on the global economy” since the bank’s December meeting.
Meanwhile, the Swissie was down against the euro, with EUR/CHF climbing 0.24% to hit 1.3113.
Later in the day, the U.S. was to publish government data on retail sales as well as a report on manufacturing activity in New York.
ForexPros.com
