Commodity Currency


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Commodity Currency

A currency with an exchange rate highly correlated to the price of a commodity that is important to the economy of the currency issuer. For example, the Canadian dollar tends to be strong when oil and soybean prices are high because these are two major commodities produced in Canada. Other commodity currencies include the Australian dollar and the New Zealand dollar.
References in periodicals archive ?
The evolution of the Trumpian trade warring era and its impact on the global economy will continue to have directional influence on USD-CAD given the Canadian Dollar's standing as a commodity currency. USD-CAD has support at 1.3270-73.
The new currency pairs include exotic pairs, crosses with the Swiss Franc and crosses with the Australian Dollar, a major commodity currency.
The Australian dollar rose 0.6 percent to $1.0345, holding firm after climbing roughly 0.9 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.
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.

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