TURN BY TURN | THE CROSSSNAP: AUDCHF (HEDGED)

8 lug 2024

AUDCHF | LONG | INTRADAY

The Story

I arrived at my desk at about 8:15 AM, ready to tackle the trading day. The only pair catching my attention in the Asian session was AUDCHF. Typically, I’m not a huge fan of the Swiss franc due to its tight trading range, but today was different. I decided to engage in the business that needed doing. Normally, I use the Swiss franc as a safe haven indicator, but today, I chose to buy the Australian dollar against it.

ECO SNAP

My economic calculator, which aggregates various economic aspects of countries, rates them to provide a comprehensive outlook.

Comparison

Australia:

Economic Outlook Score: +1.33

Highlights: The Australian economy benefits from low unemployment, a strong trade balance, and positive consumer confidence. However, there are some concerns regarding inflation, which is slightly above the target.

Switzerland:

Economic Outlook Score: +1.44

Highlights: Switzerland's economy boasts very low unemployment, controlled inflation, a strong trade balance, and positive consumer confidence. These factors contribute to a marginally stronger economic outlook compared to Australia.

Combined Analysis:

The Swiss franc (CHF) has a slightly higher overall score (+1.44) compared to the Australian dollar (AUD) (+1.33), indicating a marginally stronger economic outlook for Switzerland. Both economies show low unemployment and stable economic indicators, but Switzerland benefits from better inflation control and a lower interest rate environment, which supports economic stability.
Strategy
Today's strategy is straightforward: get in and get out quickly.

Interest Rate Differentials: We have interest rate differentials working in our favor, which typically benefits such trades.

Timing: Since it's Monday, and swaps are charged on Wednesdays and Fridays, there is likely no support for us between now and then.
Given these considerations, I will capitalize on the favorable conditions and execute my trades efficiently to maximize potential returns while minimizing risks.

9 lug 2024

Trade chiuso: obiettivo raggiunto

11 lug 2024

Nota

This played out well, and now we have completed a follow up from CADCHF. I did not trade it but lined it up, and needed to step away to tend to other business but check out the EUR/GBP/CAD against the CHF. All long, and for what?