Australian consumer confidence rebounded slightly as the holiday shopping season started and the RBA kept interest rates unchanged in a move widely expected by markets. The AUDCHF extended its advance an is now testing the strength of its horizontal resistance level. Do bulls have enough momentum to force a breakout or will bears reject this currency pair? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

Switzerland experienced another month of deflationary pressures as evident in this morning’s CPI report. Yesterday showed that the global manufacturing sector is sliding deeper into a recession and the safe-haven Swiss Franc is favored to benefit from this. Are the bears preparing for a major move in the AUDCHF or can the bulls push higher from current levels? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.