AUD/CHF Grinds Higher as Carry Trade Momentum Continues

The Aussie dollar has been showing strength in trading sessions on Friday, as traders continue to participate in the carry trade. This momentum is being fueled by a speech from Kevin Warsh in the United States, which suggests that the Federal Reserve is taking a tight monetary policy approach.

This development has led many to believe that the carry trade still has legs, even if it doesn't directly impact the AUD/CHF pair. However, both currencies are expected to lose strength against the dollar, with the Swiss National Bank's interest rate policy firmly set at 0%.

Technical analyst Christopher Lewis is bullish on the market and recommends buying short-term pullbacks as opportunities to take advantage of the overall momentum. He notes that this trend has been ongoing for some time and doesn't see it changing anytime soon, with a potential resistance level at 0.58 and a target at possibly pushing through.

As traders continue to ride the carry trade wave, Lewis advises taking advantage of the daily swap payments as an added bonus. With the market set to grind higher, rather than experience a sudden surge, those who have weathered the previous downturn should remain optimistic about the AUD/CHF pair's prospects.