Au to usd7/14/2023 For example, Canada relies on oil and oil products, Australia on oil, other energy sources, and agricultural products, and New Zealand on dairy and meat products.Īdditionally, the monetary policies and key interest rates set by local central banks take part in forming currency rates. But you should first investigate which commodities are essential for every country's export. Rising prices have a positive effect on commodity currencies, while falling prices have a negative impact. Significant traded directions for Australia are China, India, and Japan, while New Zealand primarily relies on trade with Australia and China.Ĭommodity prices also play a crucial role. For example, Canada's economy is closely linked to the export of various commodities to the US due to their shared border. Therefore, let's include the US dollar index, which indicates the USD's performance against other major currencies, on the chart.īased on this information, we can see that the New Zealand dollar and the Australian dollar have outperformed the US dollar and most major currencies, while the Canadian dollar is slightly falling behind (however, the gap is not too big).īut why are CAD, AUD and NZD called commodity currencies, and how does this designation impact their exchange rates? Well, these three currencies are influenced by export volumes. However, there are some differences in results – for example, a nearly 5% gap between NZD and CAD. Observing the chart, we can identify general patterns in the movement of these currency pairs. Monitoring the economic calendar, which highlights major and minor global economic events, is one such tool. It's worth noting that many of these fluctuations can be forecasted using specialized tools for traders and investors. To begin, we can examine the currency pairs of interest, namely USD/CAD, USD/AUD, and USD/NZD, through a chart depicting their movements since the start of 2023. Let's explore what lies ahead for the Canadian dollar, Australian dollar, and New Zealand dollar. However, they are united not only by the word "dollar" in the titles, all of them are known as commodity currencies. Actually, the CAD, the AUD, and the NZD – the members of this trio – definitely have family ties as you probably know. There were three brothers – older, middle and younger.
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