Commodity currencies in the Forex market
Commodity currencies on
Forex market are determined by the country’s export component. That is, the commodity
or commodity currency is called the, exchange rate which directly depends on the country
As you already know from
theory of the Forex market is influenced by a variety of on exchange rate
factors: economics and politics of the country, major international events and rumors
expectations, accidents and so on.
However, there are
a country where all the usual factors do not have such an impact on the exchange rate,
other than exports, the success of which will depend on the exchange rate.
turn to countries such as Canada, Australia and New Zealand. Exactly at
these countries currency called commodity currency or commodity currencies.
To understand how could
happen that these countries are dependent on exports, let’s look at each
country in more detail.
Canada has a large
oil, to 180 MHR. bar. At the same time, Canada is second only to oil reserves
Saudi Arabia. As you know, the demand for oil is growing in the world,
nothing that the oil is called “black gold”.
The main consumer
Canadian oil are the United States, which take almost 70%
oil produced in Canada.
It’s not a secret to anybody,
that the currency pair USDCAD,
Canadian dollar is highly dependent on the rate of oil on the foreign exchange market.
You can make your own
observe a pattern: if the Brent crude oil price falls,
the US dollar (USD)
It is growing, and the Canadian dollar – falls (chart USDCAD –
up). And the reverse pattern: if oil prices begin to rise, then
US dollar falls in value, and the Canadian dollar – increasing (Chart USDCAD –
Canadian Oil is Japan. Therefore, we can see this relationship on
Moreover, the Canadian
the dollar is still dependent on the US stock market as the economy Americans
very dependent on Canadian oil, and the domestic market enterprises and their share
will correlate with the rate of USDCAD.
the dollar and the value of shares on the US stock exchange Direct: if the index basket
US stock goes up, and the Canadian dollar is also growing, but at the same time
falling US dollar, and, on the contrary: in the fall on the stock exchange
US, Canadian dollar falls, but, on the other hand, successfully growing the US
Commodity currencies –
Canadian Dollar (CAD)
depends on the world prices for oil (OIL), their correlation is about
80%. Although, in recent time, financial market analysts have noted relief
Depending on the Canadian dollar exchange rate of the world’s oil. The cases, when
commodity currency – the Canadian dollar reacts poorly to the slightest price fluctuations
oil. Therefore, consider this observation analysts in their trade in the foreign exchange
Australia are a wealth of priceless gold reserves. In addition, Australia
It is the third largest exporter of gold in the world, and at home – gold
It takes half of all exports. Here’s a she, gold country – Australia.
As you know, the Australian
It is a commodity currency and is dependent on the price of gold. remarkable is
the fact that the interdependence of commodity currency – the Canadian dollar and oil
less, the commodity currencies – the Australian dollar and gold.
That is, if the XAUUSD (gold)
increases in the commodity and commodity markets, and the AUDUSD (Australian Dollar), too
It will certainly grow, and vice versa.
In 2008, at the height of
the financial crisis, there is a direct correlation between the commodity currencies –
Australian dollar and gold in the currency market. A special feature at the time was
that first began to change the rate of gold in the foreign exchange market, and is already behind him
tightens and commodity currencies – the Australian dollar. Traders are all in this
I earned good money as the rate of gold was an excellent indicator for
the entrance direction of the Australian dollar in the foreign exchange market. Now such
correlation is not so stable operation not always gold course directly affects the
changes in the Australian dollar.
However, if you
want to make money on exchange commodity currency – Australian
dollar, you need to know that Australia’s economy still depends on the state of affairs in
tourism and services that are related to tourism. Therefore, if you
You hear about the bad weather in Australia during the tourist season, or even worse –
natural disasters, be aware that these events can directly affect the
aware of the commodity currencies – the Australian dollar, regardless of the rate of gold on
the foreign exchange market. Also, you how successful speculators in the forex market, you need to know
that the Australian government limits the liquidity of their Australian
The dollar, as this commodity currencies still stands, and the reserve currency for
many countries in the world that hold it on deposit as security and
the guarantor of the country’s solvency.
Commodity currencies –
New Zealand Dollar (NZD)
– this is the national currency of New Zealand. As you know, New Zealand has successfully
sells commodities on the commodities market, such as: wood, milk,
wool, meat and so on. Although these products are not so important and does not have great value,
as oil and gold, the commodity and commodity markets, but they are very much needed, as the
Basically, with the New
Bid Zealand, Australia, Japan and the United States.
It exports 20% of its goods. From the list of exported goods from New Zealand
difficult to identify a high-end product, unlike the above Canada
and Australia. Therefore, the commodity currency – New Zealand dollar NZDUSD depends
more from the Bureau of the index rate, which includes the cumulative
Depending on the basket of New Zealand products on the level of global inflation.
The correlation between
Bureau of commodity index and currency exchange rate – the kiwi – a straight line. the
ie, if the Bureau index rising, thus increasing global inflation, and thus
New Zealand’s products are in demand in the world, and the New Zealand dollar
rapidly rises up, and vice versa. In fairness it should be noted,
that the Bureau of course not jump like crazy, and is, most of time,
It so happened
historically and geographically, that New Zealand trade in goods has long been a
Australia. Therefore, their economies are interconnected. This means that commodity
Currency: Australian Dollar and New Zealand Dollar are also interrelated and
They go together. Thus, it appears that New Zealand exports its
Products in Gold Country – Australia, which enriches both the country and the favorable
impact on the course of a New Zealander.
If you want
make money on exchange commodity currency – New Zealand dollar,
you should know that in New Zealand there are migration and drought time,
that affect the country’s economy, and hence exchange rate. At the same time, you can
derive a simple rule: if the number of people in New Zealand
rises, people consume more goods and services, and hence the rate of commodity
currency – New Zealand dollar is also rising. If you see New Zealand
Drought, the production of agricultural goods and products is reduced. there is
nothing, people are starving, and hence the rate of commodity currency – New Zealand dollar
in the currency and commodity markets also falls.
you considered the basic commodity currencies – AUDUSD, USDCAD, NZDUSD and found especially on trade
these currency pairs. We ask you to take into account all the above information for the purpose of
profit from trading currencies in the Forex market.
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