Bank of America recommends AUD/CHF digital call
Bank of America strategists Oliver Levingston, Isabel Hartstein and Kamal Sharma issued a note on 16 June 2026 recommending investors buy a three‑month AUD/CHF digital call option with a target level of 0.5800. The recommendation is based on the Swiss franc’s role as a funding currency and the Australian dollar’s potential upside stemming from progress on a US‑Iran agreement and steps toward reopening the Strait of Hormuz, which have narrowed rate differentials. The note states that “a deal to reopen the Strait of Hormuz is supportive for AUD, particularly against low beta currencies.” At the time of writing, the AUD/CHF spot rate was 0.5619, reflecting a 2.6 % gain since the United States attacked Iran at the end of February. The strategists warned that the trade could be jeopardised by a sharp increase in volatility or by a dovish monetary decision from the Reserve Bank of Australia expected later in the week. The article was generated with AI assistance and reviewed by an editor, and it appears on Reuters via Investing.com.