USD / CHF consolidates gains around 0.9350 before US data.

• USD / CHF hits a new two-week high on Wednesday.
• The DXY US Dollar Index remains in positive territory following Tuesday’s rally.
• The focus shifts to durable goods orders and US PMI data.

Driven by the strength of the overall base USD, USD / CHF gained more than 100 pips on Tuesday and extended its move to a fresh two-week high of 0.9371 on Wednesday. With market action weakening ahead of the release of key US macro data, the pair appears to have entered a consolidation phase around 0.9350.

DXY Index Advances to New Multi-Month Highs

The US dollar DXY index, which measures the strength of the dollar against a basket of the six major currencies, has capitalized the safe haven cash flows and has reached its highest level since late November at 92.60 on Wednesday. Meanwhile, after a two-day correction, the 10-year US Treasury yield remains stable on the day, helping the USD retain its strength.

Later in the session, The focus will be on February durable goods orders figures and preliminary PMI manufacturing and services reports. from IHS Markit for March to get fresh momentum.

Meanwhile, S&P 500 futures are posting modest daily losses, suggesting that the DXY index could struggle to push higher in the second half of the day if flows of risk appetite return to the markets.

Thursday, the Swiss National Bank (SNB) will announce its decision on the interest rate and publish the monetary policy statement. The SNB is expected to keep its policy rate unchanged at -0.75%. Furthermore, the bank is likely to reiterate its commitment to intervene in currency markets to curb gains in CHF.

USD / CHF technical levels