AUD/CHF Outlook:
The AUD/CHF exchange rate is currently above its recent average and near recent highs, indicating a bullish outlook. Continued support from domestic monetary policy adjustments keeps the Australian dollar strong.
Key drivers:
• Rate gap: The Reserve Bank of Australia has recently increased interest rates, contrasting with the Swiss National Bank's ongoing zero interest rate policy.
• Risk/commodities: Strong global demand for commodities is benefiting the Australian currency, while fluctuating oil prices also support AUD strength.
• One macro factor: Recent inflation data from Australia, which exceeded expectations, suggests further rate hikes could be on the horizon, bolstering the AUD's appeal.
Range:
The AUD/CHF is likely to hold near its current levels within the recent range but could drift higher as traders assess ongoing economic conditions.
What could change it:
• Upside risk: A significant increase in global commodity prices could further enhance the AUD’s strength.
• Downside risk: Renewed safe-haven demand for the CHF amid geopolitical tensions could pressure the AUD/CHF lower.
