The Swissie’s all time high vs AUD

The Swiss Franc has never been this strong compared to the Australian Dollar.

This makes Australian assets very attractive to Swiss (domiciled) businesses and there is a few of them, such as….

Glencore, Nestle, ABB, Roche, Novartis, Zurich Insurance, Holcim, Adecco and UBS.

(we may see more travellers from Switzerland too)

However, there is also another observation and correlation to watch.

When the CHF is overbought against the AUD (signifying that global investors are chasing safety) it portends a rally in the ASX 200.

The vertical lines in the weekly chart below shows the moments when 14 such moments have occurred over the past 30 years with only 2 dubious black lines.

This event also bodes well for selected commodities.

August 15, 2023

by Rob Zdravevski

rob@karriasset.com.au