The market bias for the AUD to CHF exchange rate is currently range-bound. Key drivers include the interest rate differential, as the Reserve Bank of Australia is expected to raise rates next year in response to rising inflation, while the Swiss National Bank has cut rates to combat weak inflation. Additionally, Australia's economic outlook remains positive due to anticipated strength in commodity prices, particularly energy, which could support the AUD. The Swiss economy faces challenges, including the potential return of negative interest rates if the franc strengthens too much.
In the near term, the AUD to CHF rate is likely to continue trading within a stable range around its current level.
Upside risks could stem from stronger-than-expected commodity demand, particularly from China, which would support the AUD. Conversely, a deeper decline in Swiss inflation or further easing measures from the SNB could strengthen the CHF against the AUD.
