Commodity currencies: which commodity matters for which currency?
AUD, NZD, CAD and NOK are called commodity currencies, but the links are specific: oil for CAD and NOK, iron ore and Chinese demand for AUD, dairy for NZD — and all of them fade in and out over time.
Test yourself: match each currency to its commodity, then check the guide. Which link surprised you? Which one do you actually use in your trading?
The commodity currencies guide maps the relationships.
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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