Partner Center Find a Broker

Can stronger than expected Australian data keep the uptrend going on AUD/CHF?

Here are the levels I’m watching.

Before moving on, ICYMI, yesterday’s watchlist checked out AUD/CAD’s pullback setup ahead of BOC Governor Macklem’s remarks. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

New Zealand commodity prices dipped 0.1% m/m in Dec – ANZ

Australia’s CPI rose from 6.9% to 7.3% y/y in Nov vs. 7.2% forecast

Australian retail sales surged 1.4% m/m in Nov vs. 0.6% forecast, 0.4% previous

Japanese leading indicators dipped from 98.6% to 97.6% in Nov

API reported crude oil inventory build of 14.86M barrels

Chinese state media defends retaliatory measures against COVID-19 travel curbs

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. EIA crude oil inventories at 3:30 pm GMT
Chinese CPI y/y at 1:30 am GMT (Jan. 12)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: AUD/CHF

AUD/CHF 1-hour Forex Chart

AUD/CHF 1-hour Forex Chart by TradingView

The Land Down Under just printed a couple of strong data points!

Australia’s CPI and retail sales figures turned out better than expected, keeping bulls hopeful that the RBA can carry on with its interest rate hikes.

Will this upbeat sentiment be enough to keep AUD/CHF supported?

The ascending trend line on its hourly time frame seems to be holding so far, suggesting that the pair might have a shot at revisiting the latest highs around .6425.

Moving averages are also in favor of more gains, as the 100 SMA is above the 200 SMA to reflect bullish vibes.

However, Stochastic already looks eager to head south after a brief stay in the overbought zone. With that, a return in selling pressure could spur another dip to the trend line support at .6350 or perhaps a break lower.

If the latter happens, brace yourselves for a possible reversal from the rally!

The upcoming Chinese CPI release might be the next catalyst for this pair, as a strong reading could be enough to keep traders in the mood for risk rallies.

Better take the average AUD/CHF volatility into account when setting entries and exits.