USD/CHF looks to extend the recovery above 0.9700

• Swiss economy expands +0.7% q/q in Q2 versus +0.5% expected.
• Recovers in sync with US dollar ahead of tariffs deadline and US data.

The USD/CHF pair is seen trying hard to extend its Asian recovery into Europe, as the Swiss Franc derives support from a solid Swiss Q2 GDP report. The Swiss GDP rate grew by 0.7% q/q and 3.4% y/y in the second quarter of 2018, the latest data from State Secretariat for Economic Affairs showed.

The spot bounced from the Asian session lows of 0.9695, tracking the recovery in the US dollar across its main competitors, as markets flocked to the US currency in search of safety ahead of the looming US tariffs deadline, as the public hearing for the US' $200 billion tariffs concludes today.

Looking ahead, the pair will continue to get influenced by the US dollar dynamics, as markets await the US ADP jobs data and ISM non-manufacturing PMI report for fresh trading impetus.

USD/CHF Technical Levels

Higher side levels: 0.9720 (10-DMA), 0.9749 (200-DMA), 0.9800 (round number).

Lower-side levels: 0.9695 (daily low), 0.9652 (Aug 30 low), 0.9600 (key support).