AUD/CHF pair is often used as a carry trade. While the Australian dollar is generally more affected by the global economic situation, especially that in the field of commodities, the Swiss Franc is considered to be a safe-haven asset. Traders and analysts also use AUD/CHF to measure the performance of the global economy.
The Australian dollar is the currency of Australia and its external territories, as well as of several independent Pacific Island states. It is used as legal tender in Australia. AUD depends heavily on the price of commodities of which Australia is a major exporter, namely iron ore, coal, natural and petroleum gas, gold, and aluminium oxide. Changes in the prices of those commodities will affect the Australian dollar.
The Swiss franc is the currency of Switzerland. It is legal tender in Switzerland, Liechtenstein and Campione d'Italia. The currency is viewed as a financial refuge because of the stability of the government and financial system of Switzerland. The financial markets in the country are properly regulated and transparent which also leads to the CHF being used as a safe-haven.
Factors affecting the AUD/CHF rate include general economic indicators, such as information on employment, inflation data, retail sales, industrial production, trade balance and the release of GDP data, as well as the central bank decisions regarding the interest rates in both countries. Political events, natural disasters and various government policies can impact the AUD/CHF exchange rate significantly.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
