AUD/CHF Forecast 21/09: RBA Rate Hike Supports Bullish Bias

(MENAFN- Daily Forex)

The AUD/CHF is a bit of a lackluster market on Friday, but the longer-term situation is still overwhelmingly positive at this point. The markets continue to see carry traders attracted to it.

The Australian dollar has rallied a bit against the Swiss franc during the trading session on Friday, but it has also given back quite a bit of the gains. At this point, I think we might just be a little bit overbought, and short-term pullbacks open up the possibility of taking advantage of short-term drops.

There is a lot of noise between the 0.5850 level and the 0.5800 level. With this being the case, the 50-day EMA is starting to reach toward that area as well. All things being equal, this looks like a market that continues to see buyers on short-term pullbacks. The longer-term attitude continues to see this as an opportunity.

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It is worth noting that the Reserve Bank of Australia is expected to raise rates later this month, while the Swiss National Bank is expected to keep its interest rates at zero for as far as the eye can see. Although recently we have seen some signs of GDP and inflation growth in Switzerland, we are still a long way from anything close to a trend.

Furthermore, the positive carry makes this a pair that is easier to hold over the longer term to the upside because you do get paid at the end of each session. All things being equal, this is a market that continues to see a lot of value hunters on any and every drop. I think that remains the case, despite the fact that we might be a little bit stretched in the short term.

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