AUDCHF Trading

Introduction to AUD/CHF

The AUD/CHF compares the Swiss Franc to the Australian Dollar. It is not as popular as the famous AUD JPY pair. The AUDCHF possess similarities with the pair because it can also be used as a carry trade. The AUD is common among forex traders due to the overall stability and diversification of the political system. Australian Economy stability, high-interest rates backed up by the government, among other factors. Equally, the Swiss Franc is popular due to its reliable performance over the last two decades relative to the Euro and  US dollar.
Some traders see this pair as a reasonably stable expression of the danger feeling due to Swiss France’s has a safe-haven feature. The abbreviation for the Australian Dollar and the Swiss Franc is AUD CHF. It is on the market as a cross-currency pair.
The base currency is AUD being on the left, and the quote currency is CHF (on the right). Over the Australian session, one can expect high volatility and liquidity.

About the AUD

The Australian Dollar with code: (AUD) is Australia’s currency. The Outer territories: island of Christmas, the islands of Cocos (Keeling), and Norfolk. Three independent Pacific Island states make official use of it as currency: Kiribati, Nauru, and Tuvalu. It is a legal tender in Australia. In Australia, it is abbreviated with the dollar sign ($). Sometimes, using A$ or AU$ to distinguish it from other currencies denominated in dollars. The $ symbol precedes the amount. It splits into 100 cents.

On February 14, 1966, the Australian Dollar was introduced to replace the Australian pre-decimal Pound with the conversion rate of A$2 per = A1. The Australian Dollar was a legal tender of Papua New Guinea until December 31, 1975. The Papua New Guinea kina became the sole legal tender, and of the Solomon Islands until 1977. In 1977, the Solomon Islands dollar became the only legal tender. 

About the AUDCHF

The Franc is known as CHF in accordance with international bodies code. CHF is the legal tender and currency of Liechtenstein and Switzerland. It is equally a legal tender in Campione d’Italia’s Italian exclave.

Understanding the AUDCHF

The AUDCHF value represents the number of Swiss francs needed to buy one Australian Dollar. The measure was one AUD for each X CHF. For instance, if the AUDCHF value is 0.6885, then that number represents the CHF provided by the trader/investor to purchase one AUD. Typically, the AUD against CHF pair is used to represent a carry trade. During unstable economic times, the CHF is seen as a very safe currency, and the Australian Dollar respond to changes in the global economy. The AUD/CHF pair is used most times as a yardstick to measure global financial performance.

Difference Between the Exchange Rate of AUD/CHF

AUD CHF is a pair of currencies comprising the Swiss Franc and the Australian Dollar. It has relatively low liquidity compared to the principal trading instruments. The pair’s movement is significantly impacted by changes in world gold and raw material prices. The Australian Dollar is a highly profitable commodity currency. This is because Australian economy is focused on natural resource exports. The Swiss Franc is popular among forex traders is primarily connected with its status as the world’s most stable currency
The Swiss economy’s principal characteristic is its stability. During world economic problems, the nation serves as a kind of sanctuary for creditors. When carrying out the fundamental AUD CHF pair study. It is vital to take into account not only Switzerland and Australia’s critical macroeconomic measures. Take note of data on the state of the US economy, including the unemployment rate, inflation rate, GDP indicators, and interest rate. Note other variables that define the economic growth of those countries.
When trading the AUDCHF pair. Determine the opening point of a trading position, one should note the pronounced levels of support and resistance. Pay attention to indicator signals and candlestick patterns. The current AUD/CHF quotation chart displays on Forex the current cross-rate of the Australian Dollar to the Swiss Franc

Equity Exchange Hours and CHF

CHF trading hours approximately suit exchange periods. Grow trade while the stock markets in New York, Frankfurt, and Chicago are fully open and ready for business. This act of localization produces a rise in the amount of trade in the US around midnight. East Coast, where forex trading activity can drop sharply, continues during night-time and into the US lunch hour
However, the agenda of the central bank in other parts of the world adjust this cycle of activity. When the Federal Reserve (FOMC) releases an interest rate decision at about 2:00 p.m, the traders take note. Bank of England (BOE) issues its 7:00 a.m. rate decisions. The European Central Bank (ECB) on the other hand follows at 7:45 a.m.
Both releases occurring in the focal center of CHF’s high volume activity.

Important Information About CHF

The Economy of Switzerland is considered a safe haven and is considered one of the economies of the world with high stability. The economy relies on foreign investment. The rate of unemployment is approximately 3 percent. Watchmaking, chemical manufacturing, textile production, and machinery manufacturing are the primary industries. Products exported are agricultural, metal, machinery, watches, and chemical products. 
Vehicles, textiles, metals, machinery, and agricultural products are imported products. Switzerland has a highly developed tourism infrastructure. In Switzerland, around 28 percent of all funds made offshore are banked. Switzerland holds neutral grounds and is not a member of the E.U.
Switzerland declared in 1848 that the Swiss Federal Government would be the only body with exclusive right to issue of the Swiss Franc.
The very first Swiss franc was introduced in 1850, and it was equal to the French Franc. In 1865, the Latin monetary union welcomed Switzerland, a union that already had Belgium, Italy, and France as members. Switzerland agreed, in 1945, to join the Brentwood network. The Franc was valued at 4.375 francs = 1 USD to the US dollar. It was parallel against the Euro from 2003 until 2006 and was valued above the US Dollar in 2008. In 2010, it introduced the 9th series of Francs. 

Important Information About AUD

Economy Australia has a modern economy, which is actively developed and established. In 2011 GDP rated Australia as the 13th largest economy. Australia’s economy relies on the service sector, which accounts for 60% of the total GDP. Import goods include servers, devices, pieces of telecommunication, and machinery. Others include supplies of petroleum, and crude oil. The products for export include gold, beef, silver, wool, cotton, iron ore, and coal. For the year 2010, the overall export volume is forecast at $2,107 billion AUD.
The Australian Dollar was replaced in 1966 by Australian Pound. The currency was valued at 2 AUD = 1 Pound, with 1 cent, 2 cents, 5 cents, 10 cents, 20 cents and 50 cents being the first coins introduced. Australia abandoned the sterling standard in 1967 and tied the Australian Dollar at a rate of 1 AUD = 1.12 USD to the US dollar.
The AUD evolved into a floating currency in 1983. The Australian one-dollar coin was introduced in 1984; the double-dollar coin was launched in 1988. The 1-cent and 2-cent coins were retired in 2006, and withdrawn from circulation. Australia has made coins, and special edition notes to commemorate events such as the 1982 Commonwealth Games.

Spread of AUD/CHF

The spread refers to the difference between the ask price and the bid price of the market. This is usually set by the brokers. However, it doesn’t have a static value. Your account type plays a role in determining your price.

What is the Ideal Way to trade AUD/CHF?

Volatility is something you need to understand when trading with this pair. You will see that with an increase in volatility, the trade decreases, and vice versa. However, it is not suitable to trade at these two times, increase and decrease, as they are extremes. It is better to pick a suitable time, any time during which the pip movement is almost equal to the average of their values. If they are not equal they should be a bit less or more.


Australian currency focused on natural resource exports.

Posts Tagged With AUDCHF