AUDCHF Chart Technical Outlook the rally would attract sellers, 0.6040 eyed
AUD/CHF broad bias is bearish. RBA paused the tightening policy temporarily, but AUD strengthened. SNB hiked its interest rate, but CHF declined. Both central banks can be confusing. Markets still expect another 25 bps interest rate hike from both banks, but not fully priced yet.
RBA Governor Philip Lowe’s term will end this September, and Australia Treasurer Jim Chalmers will decide this month if he will renew for Lowe or assign someone else.
Swiss inflation has cooled below the 2% target, but the labor sector is still tight, and the hawkish ECB can motivate SNB to hike more.
Both central banks have uncertainty.
Technical indicators and retailers’ sentiment support the bearish side.
Upside correction has room for 0.6010, then 0.6040, and rallies would find sellers to bounce lower.
Supports are at 0.5960 and 0.5900.
