Trading 101: The commodity currencies
Commodities are natural resources
The AUD, NZD & CAD are collectively known as the commodity currencies. Why? Because they are heavily influenced by their export of various commodities.
- CAD is highly influenced by oil prices. If oil remains bid, then expect USD CAD to keep falling
- AUD is highly influenced by Iron ore & coal prices
- NZD is highly influence by dairy products.
In a 'risk on' environment then we tend to see the commodity currencies rise. In a risk off environment, the commodity currencies fall.