USD/CHF clinches highs near 0.9450

FXStreet (Edinburgh) - The US dollar is now picking up pace on Tuesday, pushing USD/CHF to the area of daily tops near 0.9450.

USD/CHF bid after PBoC move

The pair is extending its upbeat momentum today following the recent decision by the PBoC to cut its interest rate by 25 bp to 4.6%, the deposit rate to 1.75% and the RRR by 50 bp. With today’s decision, the PBoC looks to pump longer-term liquidity and counteract the downside pressure in the domestic economy.

The pair is reverting the negative multi-session streak following yesterday’s drop to 8-week troughs in the mid-0.9200s, in a context where the greenback continues to gather further traction.

USD/CHF important levels

The pair is now advancing 1.36% at 0.9433 facing the next resistance at 0.9457 (high Aug.24) ahead of 0.9587 (high Aug.21) and then 0.9672 (high Aug.20). On the downside, a drop beyond 0.9315 (low Aug.25) would open the door to 0.9259 (low Aug.24) and finally 0.9156 (low Jun.22).

China's Central Bank cuts benchmark interest rates

After the recent havoc caused in the financial markets by the Chinese stocks crash, the Chinese central bank PBOC slashes key rates in a bid to provide long-term liquidity and hence to boost the economy.
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