Investing.com - The dollar slipped lower against the Swiss franc on Friday after data showing that U.S. new home sales fell last month saw investors reassess expectations on when the Federal Reserve may start to unwind its asset purchase program.
USD/CHF hit session lows of 0.9190, before settling at 0.9218, 0.15% lower for the day and ending the week down 0.29%.
The pair is likely to find support at 0.9161, the low of August 21 and resistance at 0.9284, the high of August 19.
The Commerce Department said U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The data came amid ongoing speculation over whether the Fed will start to scale back its USD85 billion-a-month asset purchase program in September.
Wednesday's minutes of the Fed's July meeting showed that officials were "broadly comfortable" with plans to reduce asset purchases, but divisions over the timing of possible tapering remain, with almost all committee members agreeing that a change in the purchase program was not yet appropriate.
The minutes also described recent U.S. economic data as "mixed ", indicating that plans to taper could be pushed back if the economy was to weaken.
Elsewhere, the Swissy was almost unchanged against the euro at the close on Friday, with EUR/CHF edging up 0.02% to 1.2329, down from session highs of 1.2361.
The euro remained supported after European Central Bank policymaker Ewald Nowotny said Friday he did not see many arguments for a rate cut.
The comments came after euro zone PMI data earlier in the week indicated that the region's economy is continuing gain momentum. A report on Friday showed that German economic growth was revised up to 0.7% in the second quarter.
In the week ahead, investors will be looking ahead to revised data on U.S. second quarter growth, as well as reports on manufacturing, consumer confidence and the housing sector.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, August 26
The U.S. is to publish official data on durable goods orders, a leading indicator of production.
Tuesday, August 27
The U.S. is to publish private sector data on house price inflation as well as a closely watched report on consumer confidence.
Wednesday, August 28
The U.S. is to release private sector data on pending home sales.
Thursday, August 29
Switzerland is to produce data on the employment level, a leading indicator of economic health.
The U.S. is to publish revised data on second quarter gross domestic product, the broadest indicator of economic activity, as well as the weekly report on initial jobless claims.
Friday, August 30
Switzerland is to publish its KOF economic barometer, an important indicator of economic health.
The U.S. is to round up the week with a report on manufacturing activity in Chicago and revised data from the University of Michigan on consumer sentiment, as well as reports on personal income and personal spending.
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