USD/CHF: Bulls struggle to make it through 1.0120 supply zone
| • Easing US-China trade tensions dampen safe-haven demand and helped regain traction.
• A modest pickup in the USD remained supportive; subdued US bond yields capping gains.
The USD/CHF pair regained positive traction on Tuesday and recovered the previous session's modest downtick, albeit struggle to make it through the 1.0120 supply zone.
The US-China trade tensions eased a bit after the US Commerce Department temporarily allowed Chinese telecommunications giant Huawei to continue to purchase the US made goods until Aug. 19. The reprieve lifted global risk sentiment - evident from a goodish bounce in equities, and undermined demand for perceived safe-haven currencies - including the Swiss Franc.
The intraday momentum - marking the fifth day of positive move in the previous six, was further supported by some renewed US Dollar buying interest, which got a minor boost after the Fed Chair Jerome Powell argued against cutting interest rates in the near-term and said that it was premature to make a judgment about the impact of trade-tariff issues on the monetary policy.
However, a subdued action around the US Treasury bond yields failed to impress the USD bulls and now seemed to be the only factor keeping a lid on any strong follow-through up-move amid absent relevant fundamental triggers. Later during the early North-American session, the release of US existing home sales data will now be looked upon for some short-term trading impetus.
The key focus, however, will remain on Wednesday's release of minutes from the latest FOMC monetary policy meeting, which might play an important role in influencing the near-term USD price action and eventually provide some fresh directional impetus for the spot.
Technical levels to watch
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