ETFS Bullish USD vs Commodity Currency
Basket Securities (DE000A12Z3T0)
The new currency pairs include exotic pairs, crosses with the Swiss Franc and crosses with the Australian Dollar, a major commodity currency
9 percent on Thursday for its biggest one-day gain in a month as traders trimmed bets against the commodity currency
The Australian dollar - a high-yielding and commodity currency
that has benefited from the global economic recovery - followed a similar pattern by dropping against the dollar at 2 am.
The relative strength in the commodity currency
has been impressive and shows no signs of let up even after breaking psychological barriers by 0.
Sterling-priced gold, for instance, is only at its highest since April, while bullion in commodity currency
the Australian dollar is struggling to revisit recent two-month highs.
As a result, the commodity currency
may extend its rally throughout the week however as economists project employment to rise for the second consecutive month in September however, housing starts are forecasted to fall to 148.
The Australian Dollar on the other hand has underperformed, with the commodity currency
weighed down by the weaker than expected retail sales number.
Some of the weakness in commodities is attributed to month-end profit-taking but sentiment is also emerging that commodity and commodity currency
gains of late have been over optimistic on the global recovery.
The Canadian dollar rose to a fresh trend high against the greenback, driven by higher oil prices paired with the rise in market sentiment, and the commodity currency
may continue to advance over the following week as traders raise their appetite for higher risk/reward investments.
As such, we feel it might be time to start looking for a potential pullback in the outperforming commodity currency
in light of the latest equity developments, with the S&P and DJIA both putting in bearish outside days on Thursday.