The Australian manufacturing sector steepened its recession, but annualized inflation increased unexpectedly. Building approvals rose on an annualized level, but contracted monthly, followed by a smaller increase in house prices. The AUDCHF collapsed into a significant horizontal support area. Will bears push this currency pair into new multi-decade lows, or will bulls step in and reverse price action? Today’s fundamental analysis will take a look at price action in both directions.

Forex traders will get the Swiss manufacturing PMI for January. The SNB has allowed the Swiss Franc to correct, but it may feel forced to interfere as it has done many times before. The coronavirus is expected to apply downside pressure on the global economy, and strain the supply chain. How will this impact the AUDCHF? Will safe-haven demand for the Swiss currency keep the sell-off going, or will bulls take advantage of oversold conditions? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.