AUD/CHF trading

AUDCHF is the combination of the Australian dollar and Swiss franc in the foreign exchange market. Both currencies are strong, but when they come together, they constitute minor currencies as there is no involvement of the US dollar. Minor pairs have lower liquidity and are traded in lower volumes. 

Minor currency pairs are usually traded at wider spreads. The Swiss franc is considered a safe bet, and when combined with the Australian dollar, it becomes an ideal pair to trade in as the Australian dollar is more receptive to global economic conditions. 

In this currency pair, the AUD is the base currency and the Swiss franc is the quotation currency. 

Reading the AUD/CHF Price

The AUD/CHF is a minor cross with relatively low liquidity, possessing spreads ranging from 2 and 6 pips on most forex brokers. For traders who are interested in the advantageous trading attributes. 

The currency pair also gives room for moderate volatility as the prices range from 60 pips to 120 pips on a daily basis.

The Swiss franc is seen as the most stable currency in the world. The reason being that it is backed 25% in gold. 

AUD is a commodity currency, and the dynamics are similar to those of AUD and USD. 

History of the AUD/CHF

The Australian dollar is the official currency of Australia, Norfolk Island, Cocos Island, and Christmas Island. It is legal tender in Tuvalu, Kiribati, and Nauru. The Australian dollar was initially pegged to the USD, but since 1983 it has been considered a free floating currency. Australia has been on the run towards development and 13th place in nominal GDP, and in the year 2022 it will be considered the 5th most traded currency in the world. 

The Swiss franc is the official currency of Switzerland and Liechtenstein. It was founded in 1850. The CHF, or Swiss franc, is known as the safest currency in the world. Investing and pairing up CHF will help an investor maintain the momentum of their savings in tune with global economic issues and other turmoil. The economic policies in Switzerland are what keep the currency stable and not fluctuating most of the time. And the Swiss franc is also on the list of the most traded currencies in the world. 

Major Bodies Influencing the AUD/CHF / PRICE DRIVERS

The major bodies influencing the AUD/CHF are as follows:

Reserve Bank of Australia: This is the central bank of India, and it is this institution that helps guide Australia towards economic growth and prosperity. The bank releases the cash rate on the first Tuesday of every month except January. 

Australian Bureau of Statistics: Australian Bureau of Statistics is the national statistics agency of Australia. It has been entrusted with collecting vital information on its citizens on different metrics. The major areas that help determine the growth of the Australian economy are aspects like the trade balance, consumer price index, and unemployment rate.

Swiss National Bank: This is the central bank of Switzerland. Just like the Reserve Bank of Australia, the SNB is also pretty active in the forex markets and plays an important role in stabilising the economy of Switzerland. 

Swiss Federal Statistics Office (FSO): The FSO is responsible for deriving the niche statistics of Swiss life, and these help in devising the rightful strategies and policies that will help the growth and development of the country. The right involvement of FSO in collecting articulate data is also helping to determine and maintain the consistency of the currency.

AUD/CHF Correlations

There is a positive correlation between AUDCHF and currency pairs like NZDCHF, AUDJPY, NOKJPY, and NZDJPY. The negative correlation of the pair is basically with EURAUD, GBPAUD, EURNOK, and USDTRY.