USD/CHF rises back above 0.9150

• The USD/CHF is trading higher again while the Dollar rises due to risk aversion.
• Franc buyers will be watching Tuesday’s Swiss CPI reading.
• The NFP will be published on Friday, so investors will position themselves in advance.

USD/CHF rebounded on Monday following last Friday’s decline, and broader market risk flows are seeing investors pour into the US Dollar (USD) ahead of another US Nonfarm Payrolls Friday.

Monday’s US manufacturing Purchasing Managers’ Index (PMI) numbers were mixed, with the September manufacturing PMI recording a healthy 49 versus an expected rebound to 47.7. The upside potential was limited by manufacturing prices, as the ISM manufacturing inflation index fell to 43.8, below the expected improvement to 48.6.

The next release on the USD/CHF agenda will be the Swiss Consumer Price Index (CPI), which will be released on Tuesday at 06:30 GMT.

Swiss inflation is expected to improve from 1.6% to 1.8%, but momentum heading into the middle of the week will be limited by the release of the US ISM Services PMI, which is forecast to decline from 54.5 to 53.6. US services inflation data will be released on Wednesday at 14:00 GMT.

USD/CHF Technical Outlook

The USD/CHF pair advanced 85 points from Monday’s low to mark an intraday high just below the 0.9200 zone, and the pair is currently weakening at the midpoint near 0.9170. The pair remains above the 200 hourly simple moving average near 0.9110, but the near-term ceiling remains last week’s high at 0.9225.

On daily candles, USD/CHF is extending above the 200-day SMA near 0.9050, and a bearish confirmation would first have to decisively fall below the 34-day EMA, which is currently rising at 0.9000 zone and is primed for a Bullish Breakdown of the 200-day SMA.

USD/CHF Daily Chart

USD/CHF technical levels