USD/CHF breaches 0.96 handle on weaker US retail sales
|The USD/CHF extended previous session's rejection slide from the 0.9700 handle and touched a session low near 0.9570 area during early NA session.
Renewed geopolitical tension, following N. Korea's latest missile launch on Friday, remained supportive for the Swiss Franc's safe-haven appeal and had been one of the key factors weighing on the major since early Asian session on Friday.
With the markets looking past yesterday's stronger than expected US CPI print, the US Dollar lost some additional ground after the latest US monthly sales unexpectedly contracted in August.
The disappointing consumer spending data, to some extent, was negated by better-than-expected Empire State Manufacturing Index, coming-in at 24.4 for September as compared to a reading of 19 expected, and helped limit deeper losses.
Today's US economic docket also features the release of industrial production data and Prelim UoM Consumer Sentiment, which would now be looked upon for some immediate respite for the USD bulls.
Technical levels to watch
A follow through selling pressure has the potential to continue dragging the pair towards mid-0.9500s en-route its next support near 0.9520 level. On the upside, any recovery move might now confront fresh supply near 0.9640 level, followed by 100-day SMA strong hurdle near the 0.9690-0.9700 region.
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