Commodity Prices and Currency Moves
When trying to distinguish the relationships between certain commodities and currencies around the world it helps to realize that situations can change and the relationships are fluid. However, there are some time-tested relationships that have been established over the years that may continue to hold true well in to the 21st century. Let’s take a look at a few of the most reliable correlations between commodities and the currencies they influence.
AUD/USD – Markets eye data
AUD/USD and Silver
What are commodities?
The prevailing thought around trading circles is that Gold and the AUD/USD (Australian Dollar / U.S. Dollar) is the ultimate correlation to follow, however, Silver is actually more reliable. It’s no secret that Australia has a significant portion of their economy tied to mining, but most don’t realize the scale with over 2% of the workforce employed by it, over 5% of the GDP relying upon it, and it contributes around 35% of the nation’s exports. Therefore, the fluctuations of the metal market have a large impact on the outlook for the AUD.
Pound to Canadian Dollar
USD/CAD and West Texas Intermediate Crude Oil
Commodity Prices and Currency Moves best currency pairs
Benefits of trading the forex market
West Texas Intermediate or WTI is the main type of oil traded in North America and is incredibly influential to the Canadian economy. It’s no secret that the U.S. is the world’s foremost consumer of oil (at nearly 19 million barrels per day (bpd), well ahead of 2nd place China at almost 11 million bpd), but many people don’t realize how they get said oil.
Live FX News
Many make the false assumption that Saudi Arabia is the nation with which it relies on a majority of its oil imports, but a third of oil imports comes from Canada, with Saudi Arabia contributing just over 17%. Interestingly, out of the 19 million bpd the US consumes 10 million bpd are produced in-house, but since Canada exports so much oil to their larger neighbors to the south, their currency is intrinsically tied to the value of the black gold.
USD/NOK and Brent Crude Oil
While these correlations are the most recognized and reliable in the early part of the 21st century, it doesn’t mean that they are the only ones. There are plenty of commodities around the world, and the ever-changing global landscape means that certain industries will diminish while others rise up.
According to some estimates, the known oil reserves will only supply the world until around 2040, after which we may have to find another form of making our machinations operate.
Commodity Prices and Currency Moves
When trying to distinguish the relationships between certain commodities and currencies around the world it helps to realize that situations can change and the relationships are fluid. However, there are some time-tested relationships that have been established over the years that may continue to hold true well in to the 21st century. Let’s take a look at a few of the most reliable correlations between commodities and the currencies they influence.
AUD/USD – Markets eye data
AUD/USD and Silver
What are commodities?
The prevailing thought around trading circles is that Gold and the AUD/USD (Australian Dollar / U.S. Dollar) is the ultimate correlation to follow, however, Silver is actually more reliable. It’s no secret that Australia has a significant portion of their economy tied to mining, but most don’t realize the scale with over 2% of the workforce employed by it, over 5% of the GDP relying upon it, and it contributes around 35% of the nation’s exports. Therefore, the fluctuations of the metal market have a large impact on the outlook for the AUD.
Pound to Canadian Dollar
USD/CAD and West Texas Intermediate Crude Oil
Commodity Prices and Currency Moves best currency pairs
Benefits of trading the forex market
West Texas Intermediate or WTI is the main type of oil traded in North America and is incredibly influential to the Canadian economy. It’s no secret that the U.S. is the world’s foremost consumer of oil (at nearly 19 million barrels per day (bpd), well ahead of 2nd place China at almost 11 million bpd), but many people don’t realize how they get said oil.
Live FX News
Many make the false assumption that Saudi Arabia is the nation with which it relies on a majority of its oil imports, but a third of oil imports comes from Canada, with Saudi Arabia contributing just over 17%. Interestingly, out of the 19 million bpd the US consumes 10 million bpd are produced in-house, but since Canada exports so much oil to their larger neighbors to the south, their currency is intrinsically tied to the value of the black gold.
USD/NOK and Brent Crude Oil
While these correlations are the most recognized and reliable in the early part of the 21st century, it doesn’t mean that they are the only ones. There are plenty of commodities around the world, and the ever-changing global landscape means that certain industries will diminish while others rise up.
According to some estimates, the known oil reserves will only supply the world until around 2040, after which we may have to find another form of making our machinations operate.
Commodity Prices and Currency Moves