USD/CHF fades bounce off multi-day low under 0.9100 as Swiss Unemployment Rate loom

• USD/CHF drops back towards the lowest levels since June 2021, marked the previous day.
• Challenges to sentiment allowed Swiss Franc pair to portray corrective bounce.
• Downbeat US data, threats of de-dollarization weigh on USD/CHF price.
• Employment figures from Switzerland, US eyed for fresh impulse.

USD/CHF retreats to 0.9060 during early Thursday, after a failed recovery from the 22-month low marked the previous day. In doing so, the Swiss Franc (CHF) pair cheers the US Dollar’s broad weakness ahead of important employment data.

That said, the greenback portrayed a corrective bounce on Wednesday as downbeat US data triggered recession woes. However, the recently increased odds of the US Federal Reserve’s (Fed) no rate hike in May and challenges to the greenback’s reserve currency status seem to exert downside pressure on the US Dollar.

Talking about the data, the ADP Employment Change for March dropped to 145K from 200K expected and an upwardly revised prior of 261K. On the same line, the final readings of S&P Global Composite and Services PMIs for March also came in downbeat as the former one declined to 52.3 from 53.3 preliminary estimations while the Services PMI dropped to 52.6 from 53.8 anticipated earlier. More importantly, the US ISM Services PMI for the said month amplified pessimism as it dropped to 51.2 versus 54.5 expected and 55.1 prior.

On the other hand, Russia’s latest likes for the Chinese Yuan and the China-Brazil pact to ignore the US Dollar as an intermediate currency are the key news that recently challenges the greenback’s imperial status. On the same line are the chatters that some of the US Congressmen have proposed a Gold Standard Restoration Act to defend the US Dollar. The bill suggests re-pegging the greenback with a fixed amount of the Gold’s weight like it was before 1971.

Elsewhere, CME’s FedWatch Tool suggests a nearly 57.0% of chance that the US central bank will pause its rate hike trajectory in May.

Amid these plays, S&P 500 Futures print mild losses while tracing the Wall Street benchmarks. However, the yields remain pressured and weigh on the US Dollar. It’s worth noting that the benchmark US 10-year Treasury bond yields dropped in the last five consecutive days to refresh a seven-month low on Wednesday while the two-year counterpart also printed a four-day downtrend before bouncing off 3.79% at the latest.

Moving on, the Swiss Unemployment Rate for March, expected to remain unchanged at 1.9%, will precede the US Weekly Initial Jobless Claims to direct intraday moves of the USD/CHF pair. However, major attention will be given to Friday’s US Nonfarm Payrolls (NFP) for clear directions.

Technical analysis

USD/CHF pair’s candlestick on the daily chart for Wednesday appears challenging the bears amid oversold RSI (14). The recovery moves, however, need validation from a two-month-old support-turned-resistance, around 0.9085 by the press time.