The AUD/CHF pair is a peculiar one in the sense that both currencies involved in it are majors, but the pair they make is not one. The pair is not a commodity one either, given how the CHF is more of a finance-focused currency.
The AUD
Unlike the Swiss Franc, the Australian Dollar is a strong commodity currency. It is backed by a commodity- and agriculture-focused economy, the main products of which include oil, gold and various minerals. First introduced in 1966, the AUD was taken off the GBP peg in 1971. The AUD is currently one of the 10 most traded currencies on the global Forex markets.
Its popularity is at least partly explained by the fact that besides being a strong commodity currency – as said above – it also acts as a powerful diversification tool for traders, on account of its exposure to the Asian markets.
The CHF
The Swiss Franc is the currency of one of the world’s sturdiest and most stable economies. Though it is situated more or less in the middle of Europe, Switzerland has thus far resisted joining the EU and adopting the Euro. Its economy relying heavily on the financial services sector, the country doesn’t currently entertain any plans to join the oft-troubled Euro club.
Despite being strongly exposed to the EUR, the value of the CHF has skyrocketed in recent years. Though it is certainly among the popular currencies trading-wise, the CHF currently only accounts for about 1% of the global Forex trading volume.
AUD/CHF Analysis
The contrast between the two economies involved in the currency pair could not be starker. Not only do the economic engines behind the currencies differ radically, the two countries take up radically different geographic spaces too.
The AUD is strongly influenced by commodity-price changes, while the CHF – though very stable, is impacted by the evolution of the price of the EUR.