Commodity currencies explained: the Australian, New Zealand and Canadian dollars and the Norwegian krone

Commodity currencies belong to economies where exports of raw materials make up a large share of trade. When prices of those commodities rise, the countries earn more from exports, and their currencies tend to strengthen. The four most traded examples are the Australian dollar, the New Zealand dollar, the Canadian dollar and the Norwegian krone.

Australian dollar: iron ore, coal and gas

Iron ore was Australia's largest export in 2024–25, ahead of coal and natural gas, according to the Department of Foreign Affairs and Trade. Much of that iron ore goes to China's steel industry, which is why AUD/USD often reacts to Chinese data (China's August inflation, China's August exports).

New Zealand dollar: dairy

Dairy is New Zealand's largest export earner, and the country is one of the world's biggest dairy exporters. Prices at Global Dairy Trade auctions, held twice a month, are closely watched by NZD/USD traders.

Canadian dollar: oil

Energy, crude oil above all, is one of Canada's biggest exports, and most of it goes to the United States. USD/CAD often moves inversely to oil prices, although the relationship has been looser in some periods (oil and the Canadian dollar).

Norwegian krone: oil and gas

Crude oil and natural gas made up 57% of the value of Norway's goods exports in 2025, according to the Norwegian government's petroleum information service. The krone therefore tends to follow energy prices, although Norway invests much of its petroleum revenue abroad through its sovereign wealth fund, which dampens the effect.

What else moves these currencies

• Interest rates. Central bank decisions often matter more than commodity prices on the day. The Reserve Bank of Australia's cash rate is 4.35% and Norges Bank's policy rate is 4.25%, well above rates in the euro area and Japan (RBA, Norges Bank preview).
• Risk sentiment. Commodity currencies usually fall when global investors turn cautious (risk-on, risk-off).
• The terms of trade. What counts is export prices relative to import prices. Rising oil prices raise costs for every economy that imports fuel, including exporters of other commodities.
• Volumes as well as prices. Higher prices don't help if export volumes fall because of weaker demand or disrupted shipping.

When the link weakens

Relationships between currencies and commodities shift over time. Changes in energy policy, how a country saves its commodity income and the level of interest rates can all loosen them. Check how closely a currency has tracked its commodity recently before assuming it will follow, and treat commodity prices as one input among several (currency correlation). Live oil prices are on the Brent crude page.