USD/CHF displays signs of exhaustion above 0.9950, US Durable Goods Orders data eyed

• USD/CHF is expected to witness more losses below 0.9920 as momentum loss kicks in.

• A steep rise in core CPI data already indicated a subdued demand for US Durable Goods.

• This week, the release of the ZEW Survey- Expectations will be of utmost importance.

The USD/CHF pair has slipped to near 0.9928 after failing to sustain above the critical hurdle of 0.9950 in the late New York session. The asset is auctioning in a minor inventory adjustment process and is expected to extend its correction further, however, the upside remains favored amid broader strength in the US dollar index (DXY).

On Monday, the asset witnessed a juggernaut rally after delivering an upside break of the consolidation formed in a tad wider range of 0.9757-0.9850. Investors shielded themselves behind the safe-haven asset as the risk profile turned vulnerable. Russia-linked negative sentiment has renewed fears of terrorism and chances of a nuclear attack.

Going forward, the DXY will dance to the tunes of the US Durable Goods Orders data. Considering the market consensus, the economic data will decline by 1.1% vs. The prior decline of 0.1%. Soaring prices for durable products have trimmed advance orders for the economic data.

One could understand from the fact that the core Consumer Price Index (CPI) remained upbeat for August. The core inflation rate reading was 6.3%, higher than the estimates of 6.1% and the prior release of 5.9%. Therefore, higher prices for durable goods have postponed their purchases.

Also, escalating interest rates from the Federal Reserve (Fed) are resulting in higher credit obligations to households, which have also forced them to ditch current purchases for durable goods.

Meanwhile, the Swiss franc investors are awaiting the release of the ZEW Survey- Expectations, which indicates the business conditions, employment conditions, and day-to-day business activities. The sentiment data is expected to improve to -48.5 vs. The prior release of -56.3. An occurrence of the same will support the Swiss franc.