Metals and Oil Dragging Commodity Currencies Higher
Joe Perry | Dec 27, 2019 09:44
Gold, silver, and oil all moved higher yesterday and as a result brought many of the commodity currencies with them.
The Australian dollar and the New Zealand dollar were putting in highs versus the U.S. dollar not seen since late July as both gold and silver were breaking above key levels trendlines and catapulting higher. Take a look at the price action below to see how the commodities and currencies were moving together.
Gold:
Silver:
AUD/USD
USD/NZD
Similarly, with West Texas Intermediate Crude Intermediate Futures moving higher, it is also carrying the Canadian dollar and the Norwegian krone higher (USD/CAD and USD/NOK lower). Both Canada and Norway are oil-export-led economies. As a result, the movement of crude oil effects the currencies of both those countries.
Get The App
Crude Oil:
USD/CAD:
USD/NOK:
As they say, a picture is worth a thousand words. When looking to trade commodity currencies, always make sure to check the underlying commodity to see if it could be ready for a big move. If so (and all else is equal), associated currencies may move with it.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.