Commodity watch: what's moving the complex?
Oil, gold, copper, iron ore, wheat — the commodity complex feeds the currency market through inflation, trade and the commodity currencies.
Post:
- the commodity story you're following
- which currency pairs it reaches
- the levels or signals you're watching
Background: commodity currencies and oil and CAD.
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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