The pair Australian and Canadian dollar looks stable and does not stand out with high volatility. Fluctuations in the exchange rate depend mainly on news about the economic successes of countries.
AUD/CHF is usually used as a Carry trade strategy, as the franc is stable and has a clear monetary policy by the National Bank.
The Australian dollar is dependent on the stability of economic conditions. AUD/CHF rarely acts as an independent trading mechanism and is more often used to assess the current state of the global economy.
The Swiss economy is developing due to the tourism industry and the high level of financial security of banks. Australia is a commodity exporter.
In 2004, the Australian government issued a batch of silver coins dedicated to Antarctic wildlife. In 2005, 1 dollar dedicated to the 60th anniversary of the end of World War II was minted. Looking at the coin from different angles, you can see the image of a "dancing" soldier who was happy about the end of the war.
Swiss banknotes are much less likely to be forged by counterfeiters than the euro, the US dollar, and the British pound. The University of Lausanne prepared a report in 2011 based on data provided by the Central Bank.
The first series of the official currency of Switzerland was released in 1907. It was assumed that the first issue of money will be in circulation temporary. Initially, old banknotes of the Swiss cantons were used, an inscription and a red seal with a Swiss cross were added to them.
The CHF abbreviation stands for Confoederatio Helvetica Franc. The Swiss currency is also called Stutz, Stei, Amyese, Frankler, and Lieber. It is also the government currency of Liechtenstein and the Italian city of Campione d'Italia.
A banknote of 1,000 francs is the most circulated denomination. The total circulation is more than 60%, despite the fact that cash payment is not possible in almost any store. It seems that bills are mainly used for savings or as a means of preserving the total value.
Also, a banknote of 1,000 Swiss francs is the currency with the highest value in circulation worldwide.
In the AUD/CHF pair, the leading currency is the Swiss franc. It is the change in its strength that determines the volatility and earning potential. In the trading practice, four main criteria that must be taken into account when trading AUD/CHF have been formed.
Retail sales data, usually published on the first couple of days of the month, is an indicator of the internal health of the economy. Since Switzerland regularly attracts a large amount of foreign investment, these data have less impact on the currency than in other countries.
Inflation rate. Switzerland is serious about the stability of its currency, which means that the National Bank can enthusiastically intervene if the data starts to go beyond the target range.
Higher inflation rates can provoke intervention, which will lead to an intuitive growth of the currency, while unexpectedly low inflation can make the currency relatively weak since this excludes the intervention of the Central Bank in the process of currency regulation.
Trade balance and GDP. The export of high-tech equipment is also a significant factor in the Swiss economy (including medicines). An increase in exports shows an increase in demand for foreign currency, as Swiss companies repatriate profits by supporting the currency and vice versa.
On the other hand, the National Bank openly supports exporters, and if the currency is too strong in its value (which is a constant in their relation to the market), they can intervene to weaken the franc.
Leading indicator KOD. This is the Swiss business confidence index, which has a strong influence on stocks and can affect the currency. An increase in business confidence usually leads to a strengthening franc, and a decrease in confidence can mean a weakening of the currency.
Use these facts to build a competent trading strategy and always conduct a comprehensive market analysis before opening orders. Despite the outward greatness of the Swiss franc, the currency is much more volatile than the Australian dollar.