Forecasts of the movement of the Australian franc pair

AUD/CHF at the basic level

The Australian dollar rose against the Swiss franc on Wednesday, after news of a possible trade agreement between the United States and Japan boosted risk appetite, and fell for safe haven currencies such as the Swiss franc.

President Donald Trump announced on Tuesday that the United States and Japan have concluded a trade agreement that includes the imposition of tariffs of 15%, which is lower than the 25% that was to be imposed, but the lack of details limited the public reaction.

The Reserve Bank of Australia has also given up on cutting interest rates this month, in large part due to waiting for the Consumer Price Index reading for the second quarter, scheduled for release on July 30. Australia is one of the few countries in the developed world that releases quarterly CPI data, which makes it difficult for policymakers to read inflation trends in a timely manner.

Michelle Bullock, the head of the central bank, is scheduled to deliver a speech on inflation and employment on Thursday.

AUD-CHF at the technical level

The Australian franc pair is trading inside a descending price channel on the four-hour frame, we expect the pair to rise near the upper limit of this channel and then the resistance levels of 0.5255.

If the 0.5255/60 levels break higher, it is expected to continue rising to target the 0.5310/15 levels, at which time the pair will have completed the bat harmonic pattern.

This scenario fails if the 0.5180 low breaks down.