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August 9, 2021

Daily U.S. Session Watchlist: AUD/CHF

 I don’t always look at comdoll crosses like AUD/CHF but when I do, it’s because there are observable trends to take advantage of.


Will the Aussie extend its downtrend against the franc this week?


Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!


And now for the headlines that rocked the markets in the last trading sessions:


Fresh Market Headlines & Economic Data:

  • Japan and Singapore’s markets out on bank holiday
  • Gold tumbles with silver as ‘panic’ selling grips Asian open
  • China’s July factory price growth quickens, adds to business cost pressures
  • Asia stocks spooked by sudden slide in gold
  • Oil slides on China COVID-19 curbs, strengthening U.S. dollar
  • Dollar hits four-month high on euro as markets bet on earlier Fed taper
  • Australian dollar soft as sentiment hit by lockdowns, commodity prices retreats
  • German exports jump despite supply bottlenecks in industry
  • Upcoming Potential Catalysts on the Economic Calendar:
  • Eurozone Sentix investor confidence at 8:30 am GMT
  • FOC member Raphael Bostic to give a speech at 2:00 pm GMT


What to Watch: AUD/CHF

The Aussie is off to a rough start to the week after the combo of higher USD demand, lower iron ore, and COVID-19 concerns weighed on the comdoll’s prices.


Lemme break it down:



Gold and iron ore – some of Australia’s biggest export products – tumbled during the Asian session. See, a better-than-expected U.S. NFP report last Friday raised Uncle Sam’s growth prospects and lessened the demand for safe-haven gold. Meanwhile, data from China hinted that iron ore demand has weakened in July even after the government took steps to curb its rising prices.

And then there are the fresh restrictions brought on by rising Delta variant cases. BOTH Australia and China (Australia’s biggest export market) have recently tightened their travel restrictions, which would limit their economies’ recoveries.


AUD/CHF is consolidating just above .6700 and is now hitting key Fib retracement levels, the 4-hour 100 SMA, a previous support zone, AND a trend line resistance that’s been around since the first half of July.


There are no top-tier reports scheduled during the U.S. session but if traders continue to hate on high-yielding bets like the Aussie, then AUD/CHF could extend its downtrend and revisit its July lows.


But if last Friday’s positive NFP report translates to risk-taking in the next trading sessions, then AUD/CHF may extend its current upswing and reach the .6800 – .6875 previous highs.