AUDCHF

The AUDCHF consists of two monetary units, namely the Australian dollar and the Swiss franc.

This instrument has significantly lower liquidity than popular instruments such as GBP/USD and EUR/USD.

The main drawback is that almost all brokers set a large spread, making it unprofitable for scalpers and traders who prefer short positions.

For example, the broker InstaForex sets a spread of 10 pips. As you can imagine, seeing a negative balance immediately after opening a position is extremely stressful. A spread of 10 pips carries a significant psychological burden.

Before talking about forecasting the exchange rate for this instrument, let's look at each currency separately.

Australian dollar AUD It is a national treasure of Australia. The AUD is among the top ten most widely traded currencies globally, with its sales volume ranking sixth behind only the dollar, euro, pound, yen, and Swiss franc. Thus, we are dealing with the currency of a major developed economy.

Australia has strong trade relations with Asian countries, so there's a clear correlation between the growth and decline of the country's trade turnover and the movement of the Australian dollar. It's believed that the Australian government exerts virtually no pressure on the national currency's exchange rate.

The country is considered a resource-rich nation, so key indicators such as sales, resource extraction, and weather conditions are the primary drivers of this currency. The AUD exchange rate is directly affected by key economic indicators, as well as speeches by heads of state. Traders pay particular attention to interest rates when working with this instrument,

as interest rate data has the greatest impact on price movement. It's also worth remembering that Australia has gold deposits, which it actively mines. Therefore, many analysts often rely on this country's indicators when forecasting gold prices.

The Swiss franc is the national currency of Switzerland. Perhaps only small children don't know about Swiss banks and how the world's rich prefer to keep their money there, although even they likely know where they keep their millions. Switzerland has the most stable economy in the world, maintaining stability for centuries and not even facing the problem of inflation.

The only time in history that the CHF has devalued was during the so-called Depression of 1936, when major global currencies devalued by 30-40 percent. Switzerland is a world-famous offshore haven, where the world's wealth flows like water. Its main economic partners are European countries, so the CHF often reacts to the instability of the European currency.

Because Switzerland has a strong economy, the movement of the CHF is influenced less by the country's economic performance than by political statements and the policies of the country's central bank.

Since Switzerland is the most reliable haven for investors, during times of global crises, many investors seek to preserve their funds in its currency. Therefore, anyone who has ever tracked the CHF exchange rate has noticed that during crises, the Swiss currency has strengthened significantly and risen in value.

An important feature of the AUDCHF currency pair is its sensitivity to any fluctuations in the dollar. Although, after looking at the AUDCHF's configuration, you might be wondering, "What does the dollar have to do with it?" In reality, the economies of these countries are closely tied to the US, so they react similarly to dollar fluctuations.

To predict the future development of the AUDCHF, I recommend paying attention to key dollar fundamentals. For example, the dollar reacts sensitively to interest rates, unemployment, jobs (decreases and openings), GDP, and sectoral indicators. Therefore, by monitoring dollar news, you will always be aware of the potential development of the AUDCHF's price.