EUR/CHF, AUD/USD Analysis and News:
- EUR/CHF Near Six Year Lows, SNB Refrains From Intervening
- RBA Maintains Neutral Stance, Eyes on 200DMA Test
EUR/CHF Near Six Year Lows, SNB Refrains From Intervening
Relative calm overnight with major FX pairs trading in ranges after digesting the latest round of Western sanctions placed on Russia. Alongside this, while there has been no breakthrough in talks between Russia and Ukraine, the fact that they have agreed to a second round of talks in the coming days was enough lift risk sentiment. Across the FX space, among the outperformers has been the Swiss Franc as safe-havens remain on the bid. What’s more, yesterday’s sight deposits data showed that the SNB refrained from intervening, despite EUR/CHF breaking below 1.03 and trading near six year lows. This is somewhat notable, given that it signals that the central bank are undeterred by the current appreciation in the Swiss Franc, thus keeping risks on the downside for now.
Source: Refinitiv
RBA Maintains Neutral Stance, Eyes on 200DMA Test
AUD: Overnight, the RBA largely stuck to the script with its monetary policy statement, reiterating that while inflation risks have increased, wage growth remains modest. The bank also acknowledged the current geopolitical backdrop to which they highlighted the impact on inflation as opposed to the growth outlook. Now while the RBA continue to reiterate a patient approach, this has done little to weigh on the Australian Dollar, which over the past month has been among the best performing currencies in the G10 space, having tracked commodities higher. Eyes now for a test of the 0.7330 where the 200DMA resides, which has previously capped gains in the currency.
AUD/USD Chart: Daily Time Frame
Source: Refinitiv
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