Bank of America recommends buying AUD/CHF on US-Iran deal outlook

Bank of America turned bullish on AUD/CHF, recommending a 3-month digital call option with a 0.5800 target. The bank argues that improving US-Iran deal prospects, including concrete steps toward reopening the Strait of Hormuz, support the Australian dollar, especially versus low-beta funding currencies like the Swiss franc. The pair was trading around 0.5619, roughly 2.6% above levels seen after the US attack on Iran at the end of February. The note suggests tighter rate differentials are also helping AUD. Key risks flagged include a spike in volatility or a dovish Reserve Bank of Australia decision this week. Overall, the article is a currency strategy note implying further upside for AUD/CHF if geopolitical tensions ease and risk sentiment remains stable.