Forexpros – The U.S. dollar was lower against the Swiss franc on Tuesday, as market sentiment improved and after stronger-than-expected Swiss manufacturing data.
USD/CHF hit 0.9354 during European morning trade, the daily low; the pair subsequently consolidated at 0.9360, shedding 0.40%.
The pair was likely to find support at 0.9266, the low of December 20 and resistance at 0.9469, the high of December 29.
Data showed earlier that manufacturing activity in Switzerland rose more-than-expected in December, returning to expansionary territory after contracting for three consecutive months.
In a report, the Swiss SVME purchasing managers’ association and Credit Suisse said that its purchasing managers’ index rose to 50.7 in December from a reading of 44.8 the previous month.
Analysts had expected the index to ease up to 45.4.
Meanwhile, the euro zone’s debt woes remained in focus ahead of a series of key events this month, including German and French bond auctions later in the week.
French President Nicolas Sarkozy and German Chancellor Angela Merkel are due to meet on January 9 in order to discuss new rules to enforce budget discipline across the European Union.
Elsewhere, the Swissie was lower against the euro with EUR/CHF gaining 0.17%, to hit 1.2177.
Later in the day, the U.S. Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.
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