Commodity Currencies Should Get Higher, This Is Why! - Kakiforex.com - Financial Market Media No. 1 in the World Commodity Currencies Should Get Higher, This Is Why! Commodity Currencies Should Get Higher, This Is Why!

April 27, 2021

Commodity Currencies Should Get Higher, This Is Why!

 The US dollar rebounded from an eight-week low, but still traded under pressure as investors cautious ahead of the FOMC policy meeting this week.


At the time of writing, the dollar index is trading higher around 90.90 against a basket of major currencies.


Market sentiment continued to pick up following the prospect of a brighter global recovery, with indices in Europe and the United States closing at higher levels, particularly technology stocks, the S&P 500 index and the Nasdaq.


This provided an opportunity for commodity currencies to perform at their best, particularly the New Zealand dollar which rose to a nearly seven -week high against the US dollar before easing its gains slightly in the Asian session.



The rise of the kiwi dollar, followed by trading of the Aussie dollar and loonie following the weaker greenback dollar and rising copper commodity prices.




Copper, often used as a global growth barometer, closed at its highest level since 2011. The combination of demand and China’s policy to tackle climate change has likely pushed copper higher.


Meanwhile, the Japanese yen traded lower as the market awaited the Bank of Japan's (BOJ) policy meeting today which is expected to maintain current monetary policy.