USD/CHF surrenders modest gains after softer US macro data

Having touched a session high level of 0.9660 level, the USD/CHF pair changed course and dropped to a fresh session low post disappointing US economic data.

The pair ran through fresh offers after ADP report showed private sector employers added 158K new jobs during the month of June, far below 185K expected. Meanwhile, previous month's reading was also revised lower to 230K new jobs as compared to 253K reported previously.

Adding to the disappointing private sector employment data, weekly jobless claims unexpectedly rose to 248K for the week ended June 23 while trade deficit for May came in at $46.5 billion as against $46.2 anticipated. Today's weaker economic data added to already weaker sentiment surrounding the US Dollar and weighed on the major.

The pair, however, has managed to hold the 0.9630-20 area and it would now be interesting to see if the support is held amid prevalent bearish trading bias around equity markets, which tends to benefit the Swiss Franc's safe-haven appeal.

Next on tap would be the release of ISM non-manufacturing PMI, which is expected to have eased to 56.5 in June from 56.9 in May. 

Technical levels to watch

On a sustained weakness through 0.9620 immediate support, the pair seems more likely to break below the 0.9600 handle and test 0.9585-80 support area. Conversely, sustained move beyond 0.9650-55 region should accelerate the up-move towards 0.9685-90 area (yesterday's swing high) ahead of its next major hurdle near 0.9715-20 zone.