• USD/CHF holds above the 0.9200 mark following the Swiss CPI data.
• The Swiss Consumer Price Index (CPI) for September came in at 1.7% YoY vs. 1.6% prior, worse than expected.
• The business conditions in the US manufacturing sector continued to contract in September.
• Market players will focus on the US JOLTS Job Openings for August due on Tuesday.

The USD/CHF pair gains traction above 0.9200 during the early European session on Tuesday. The upside of the pair is bolstered by the firmer US data and the weaker-than-expected Swiss inflation data.

The latest data from the Swiss Federal Statistical Office revealed on Tuesday that the nation’s Consumer Price Index (CPI) for September came in at 1.7% YoY from the previous reading of 1.6%, worse than the expectation of 1.8%. On a monthly basis, the inflation figure fell to 0.1%% versus a 0.2% rise prior, below than the market consensus of 0%. In response to the downbeat data, the Swiss Franc (CHF) loses momentum against the US Dollar.

On the US dollar front, the business conditions in the US manufacturing sector continued to contract in September. The US ISM Manufacturing PMI came in at 49.0 in September versus 47.6 prior, above the market consensus of 47.7. Furthermore, the Prices Paid Index dropped from 48.4 to 43.8. The Employment Index grew from 48.4 to 51.2. Finally, the New Orders Index rose from 46.8 to 49.2.

The Federal Reserve (Fed) Bank of Cleveland President, Loretta Mester, stated earlier on Tuesday that the Fed will likely need to raise interest rates again this year and the Fed's monetary policy path will depend on how the economy performs. In addition, Fed Governor Michelle Bowman stated on Monday that it will likely be necessary to raise the policy rate further and maintain it at restrictive levels for an extended period of time. That said, the higher-for-longer rate narrative in the US boosts the Greenback and acts as a tailwind for the USD/CHF pair.

Looking ahead, traders await the US JOLTS Job Openings for August due on Tuesday. The attention will shift to the US employment data later this week, including the US ADP report on Thursday and the US Nonfarm Payrolls, Average Hourly Earnings, and Unemployment Rate on Friday. Traders will take cues from these figures and find trading opportunities around the USD/CHF pair