InstaForex

October 13, 2021

It's Time For Commodity Currencies To Rise Higher!

 Commodity -linked currency trading continued to be profitable, with the Aussie dollar, loonie and kiwi trading higher against the greenback in the European session.


The increase was driven by increases in commodity prices caused by shortages in global supply, particularly copper.


The Aussie dollar rebounded near a 4 -week high, trading strong at 0.73600 against the USD, while the kiwi recorded a modest gain around 0.7000.


While the loonie dollar rose higher towards a 3 -month high, supported by the strengthening of world crude oil prices which continued to be lifted by concerns over reduced supply and growing demand.



Even so, the US dollar still maintained its strengthening momentum at a nearly one -year high, moving horizontally around 94.30 against most other major currencies.


The yen continued to trade weak at a three -year low, weighed down by higher 10 -year US treasury yields.


Being the focus of investors in the European session, was the publication of European and German economic sentiment data of the ZEW survey which showed a reading lower than market expectations.


However, initial reactions showed the euro was less impressed with the data reading, seeing the currency trade steady at around 1.5620 against the greenback.