USD/CHF reapproaches 0.99 post-US data
|- ADP beats market expectations on Wednesday.
- Unit labor costs in the U.S. contract in the third quarter.
- DXY reaches fresh weekly highs above 93 after data releases.
After failing to stay above the 0.99 handle, the USD/CHF retraced a portion of its daily gains before gaining traction on the back of the macroeconomic data released from the United States. As of writing, the pair was trading at 0.9890, adding 0.25% on the day.
ADP shows healthy growth in private sector employment
According to the data released by the ADP Research Institue on Wednesday, private sector employment in the United States increased by 190,000 on a monthly basis in November, beating the experts' expectation of 185,000. Other data from the U.S. revealed that following a 0.5% increase in the second quarter, unit labor costs contracted by 0.2% in the third quarter. Meanwhile, nonfarm productivity remained unchanged at 3% for the same period. The US Dollar Index reached its highest level since October 30 at 93.45 and was last seen at 93.43, where it was up 0.18%.
The economic calendar won't be offering any data in the remainder of the day and the DXY is likely to continue to dominate the pair's price action. Investors will also be following the mood surrounding the Wall Street closely. Following yesterday's dismal performance, equity indexes in the U.S. could stage a recovery and further weigh on the pair.
Technical levels to consider
On the upside, the initial resistance could be seen at 0.9900 (psychological level/daily high) ahead of 0.9945 (Nov. 21 high) and 1.0000 (psychological level). On the flip side, supports align at 0.9875 (70-DMA), 0.9800 (psychological level) and 0.9760 (100-DMA). The RSI indicator on the daily graph continues to edge higher above the 50 handle, suggesting that the bullish momentum is gathering strength.
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