AUD/USD watch: what are you watching this week?
A standing thread for the aussie. AUD/USD sits at the meeting point of Chinese demand, commodity prices and global risk appetite — three stories that don't always agree.
Post:
- the levels you're watching
- which China or commodity signals matter this week
- how risk appetite is treating the pair
Background: commodity currencies and the AUD/USD page.
Background: Commodity currencies explained: the Australian, New Zealand and Canadian dollars and the Norwegian krone
Why the currencies of big commodity exporters move with iron ore, dairy and oil prices, what each country actually exports, and when the link weakens.
What are commodity currencies?
Currencies of countries where commodity exports are a large share of trade, such as the Australian dollar (iron ore), the New Zealand dollar (dairy), the Canadian dollar (oil) and the Norwegian krone (oil and gas).
Why does the Australian dollar follow China?
Iron ore is Australia's largest export and much of it is sold to China, so Chinese demand and data affect Australia's export income and its currency.
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