In terms of liquidity, the AUD/CHF currency pair is considered less attractive than other Forex instruments. Its volatility mostly does not exceed one hundred points. It is believed that the most active trading day is Wednesday. On the contrary, Monday is characterized by weaker volatility.
Peaks of trading activity are observed during the opening of trading sessions in Asia, Europe and America. The volatility of the pair is the highest from 7 am to 4 pm GMT. At other times, trading of this financial instrument is significantly lower.
The key factors affecting the dynamics of the AUD/CHF exchange rate are as follows:
All of this must be taken into account when making forecasts for this financial instrument. AUD/CHF is not the most popular asset among traders, but it can be used successfully for profit.
About 90% of changes in the AUD/CHF exchange rate occur due to the Australian currency. This is due to the fact that the Swiss franc is a more stable currency. Its exchange rate is the most stable in comparison to the monetary units of other European countries.
The stability of the CHF is ensured by the wise policy of the Central Bank and the characteristics of the Swiss economy. AUD is a more dynamic currency. It is actively used by traders and investors in the international currency market. Its peculiarity is that AUD intensely reacts to any changes in the Australian economy.
During global crises, the Swiss franc is less responsive to them than other currencies. CHF is often referred to as a safe-haven currency. Given this feature, it will be more appropriate to open a short position on AUD/CHF during global economic shocks. The Australian dollar, unlike the Swiss franc, reacts to any destructive phenomena more clearly.
Australia has close economic ties with New Zealand, Japan and China. These countries account for the bulk of Australian exports. The better economic performance in these countries, the stronger AUD becomes. If crises appear in these countries, this will lead to a decrease in Australian exports to them, and therefore weaken AUD.
The average daily volatility of this financial instrument varies between 100-200 points. Such indicators are convenient for both scalping and long-term strategies. The EUR/USD currency pair has approximately the same parameters. However, the spread level for AUD/CHF is much higher. This is a cross-pair, so when working with it, double-conversion occurs with the participation of USD. Therefore, AUD/CHF is better suited for medium-term and long-term strategies.
Analytics for this currency pair is carried out in the same way as for other financial instruments of the Forex market. It is necessary to carry out a knowledgeable technical analysis, identifying trends of all major timeframes, and levels of resistance and support, etc. Also, all this must be compared with fundamental indicators. Be sure to follow the news related to AUD/CHF.