AUD/CHF Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average with no strong current driver.
Key drivers:
• Rate gap: The RBA's potential for rate hikes contrasts with the SNB's maintenance of a 0% policy rate due to low inflation, supporting the AUD.
• Risk/commodities: Demand for commodities remains vital for the AUD, influencing its strength, while the CHF's strength is vulnerable to potential negative rate implications from the SNB.
• One macro factor: China's economic recovery has boosted Australian GDP, which underpins the AUD through increased export demand.
Range: The AUD/CHF is likely to hold within its recent range, with potential for minor fluctuations as neither currency shows strong directional movement.
What could change it:
• Upside risk: A rebound in Chinese demand for Australian exports could bolster the AUD.
• Downside risk: A sudden shift in the SNB's stance on interest rates due to CHF appreciation could strengthen the franc against the AUD.
