AUD/CHF

The AUD/CHF is the currency pair encompassing the Australian dollar of the Commonwealth of Australia (symbol $, code AUD), and the Swiss franc of Switzerland (code CHF).

The pair’s rate indicates how many Swiss francs are needed in order to purchase one Australian dollar.

For example, when the AUD/CHF is trading at 0.7700, it means 1 Australian dollar is equivalent to 0.77 Swiss francs.

The Australian dollar is the world’s fifth most traded currency. Australia possesses an abundance of natural resources, such metals, wool, wheat and natural gas.

For this reason, the currency is considered risk-on and is influenced by commodity prices.

By extension the Swiss franc (CHF) is the world’s sixth most traded currency, with Switzerland specializing in stability, neutrality and quality manufacturing.

How to Trade the AUD/CHF

The AUD/CHF is a minor cross with relatively low liquidity, possessing spreads ranging from 2 and 6 pips on most forex brokers.

For currency speculators, this cross doesn’t offer much in terms of advantageous trading attributes.

However, there is enough movement for speculation due to moderate volatility, as price often ranges between 60 and 120 pips on a daily basis.

The CHF is seen as the most stable currency in the world, being backed in 25% by gold.

By extension, the AUD is a commodity currency, such that the dynamic between these two is quite similar to the much more liquid and popular AUD/USD.

The economic situation with Australia is much more likely to move the pair, such as the value of its major exports including iron ore and gold.

China is also Australia’s largest trade partner and anything impacting that relationship will affect the AUD/CHF.