September 21, 2021

Daily Asia-London Sessions Watchlist: AUD/CHF

 The latest RBA meeting minutes are up next on deck to shake up the Aussie. Will it bring enough volatility to create a short-term opportunity in the AUD/CHF ?

Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at the downtrend in AUD/USD as risk sentiment sours, so be sure to check that out to see if there is still a potential play!

Intermarket Update:

Equity Markets Bond Yields Commodities & Crypto

DAX: 15132.06 -2.31 %

FTSE: 6903.91 -0.86%

S&P 500: 4357.73 -1.70%

NASDAQ: 14713.90 -2.19% US 10-YR: 1.311% -0.59

Bund 10-YR: -0.324% -0.003

UK 10-YR: 0.786% -0.011

JPN 10-YR: 0.044% -0.004 Oil: 70.81 -1.61%

Gold: 1,765.50 +0.81%

Bitcoin: $43,786 7.58 %

Ethereum: $3,057.80 -8.38%

Fresh Market Headlines & Economic Data:

S&P 500 falls 1.7% for its worst day since May, Dow sheds 600 points

NAHB Housing Market Index: 76 in September vs. 75 previous

German PPI rose 1.5% in August

Crypto prices plummet amid global market fears

Upcoming Potential Catalysts on the Economic Calendar

New Zealand Consumer Sentiment at 9:00 pm GMT

RBA Meeting Minutes at 1:30 am GMT (Sept. 21)

Swiss Trade Balance at 6:00 am GMT (Sept. 21)

U.K. Public Sector Net Borrowing at 6:00 am GMT (Sept. 21)

If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.

What to Watch: AUD/CHF

On the one hour downtrend of AUD/CHF above, we can see the pair is once against finding support around the 0.6710 area in an overall downtrend. This could lead to a bounce back to the strong area of interest around  the 0.6750 – 0.6765 area, which has been a strong area of interest in the past as both buying and selling opportunity.

Volatility could pick up pretty soon with economic updates from both Australia and Switzerland, with the latest meeting minutes from the recent monetary policy statement as a potential catalyst. Data from Australia had been mixed in recent weeks, arguably net negative, which is likely why we may just get cautious rhetoric from the minutes more than anything else.

Given that the broad market sentiment is leaning risk-off as Delta Variant concerns and the Evergande debt crisis remains as the main risk themes, shorting AUD/CHF makes sense. If the market pops in the upcoming trading session, then we’ll be on the look out for a retest of the falling’ high’s  and previous broken support area as a potential area to play the longer-term trend lower at better prices. If we get bearish patterns there and the RBA meeting minutes gives off those bearish vibes, look out for the trend lower to resume with potential targets around the 0.600 – 0.6650 area.