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Attachments: I have forgotten which pairs are "commodity based"
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I have forgotten which pairs are "commodity based"

  • Post #1
  • Quote
  • First Post: Dec 14, 2004 10:32am Dec 14, 2004 10:32am
There are certain pairs that are noted as commodity based. I believe the Aud/Usd or maybe all Aud pairs are. What else ?

Thanks Forum.

LOU
The Australian Dollar, the Canadian Dollar and the New Zealand Dollar are called the commodity currencies.
  • Post #3
  • Quote
  • Edited Dec 17, 2004 7:52am Dec 15, 2004 2:56pm | Edited Dec 17, 2004 7:52am
Although not a major, you can certainly throw ZAR (South African Rand) in that mix.
Efficient Markets? Hah!
I appreciate the willingness of those on this forum to help.



Lou
Quoting Rhody Trader
Although not a major, you can certainly throw ZAR (South African Rand) in that mix.
does anyone here trade the Rand???
Relax and be happy.
Quoting merlin
does anyone here trade the Rand???
Yes, I trade it for food, a roof over my head, books etc. but definitely not with major currencies
Quoting marejp
Yes, I trade it for food, a roof over my head, books etc. but definitely not with major currencies
LOL

why not trade it vs. the USD? seems you would have the inside scoop on that
Relax and be happy.
Quoting merlin
LOL

why not trade it vs. the USD? seems you would have the inside scoop on that
Hell no, the spread is bigger than my trading account, lots of volatility, not good for money management. If I really want to go the USD/ZAR way I'll buy myself a McDonald Burger, even supersize it if I feel I want to take a risk .
Lol:d
Relax and be happy.
Quoting ashoksagar
The Australian Dollar, the Canadian Dollar and the New Zealand Dollar are called the commodity currencies.
Sorry to ask this stupid question: Why they are call commodity ? What is the difference between a non commondity one ?

Regards

Mx
Commodity driven currencies are those currencies who are affected by the rise or decline of the prices of certain commodities, like Gold, Copper, Platinum and Oil.

Because the economy of such countries is dependant on those commodities, their currencies appreciate and benefit when the commodities go up and they decline when the commodities go down. This is not the exact case in all times of course, but this is the generalization I believe. Rising in the mentioned commodity prices bring inflation to these economies and thus inspire interest rate hikes and make their currencies attractive over the USD which is the case for the CAD, NZD and the AUD.

Any comments are welcomed.

Thanks,

Nader
What's a Rand?
~If you fail to plan, you plan to fail~
Quoting gcl915
What's a Rand?
Rand (also spelled Rann, Rahn. Also called French Seat, Rand Welt)
The historical shoemaking term rand and its various spellings, are first used in the very late 16th century to describe a type of thin welt that’s been rolled under the insole and braced with thread. This technique almost certainly derived from leather covered cork or wooden soles on certain forms of pattens, ecclesiastical footwear, and winter shoes. The term will therefore be used earlier than it is known to have been used elsewhere when describing the construction of those items. The term Rand is used historically to describe several different sorts of welt, and in the archeological jargon to refer to welts in turn-shoes, although this particular usage has no basis in either shoemaking or history.


Oh! And it's also the currency of South Africa.
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Quoting narafa
Commodity driven currencies are those currencies who are affected by the rise or decline of the prices of certain commodities, like Gold, Copper, Platinum and Oil.

Because the economy of such countries is dependant on those commodities, their currencies appreciate and benefit when the commodities go up and they decline when the commodities go down. This is not the exact case in all times of course, but this is the generalization I believe. Rising in the mentioned commodity prices bring inflation to these economies and thus inspire interest rate hikes and make their currencies attractive over the USD which is the case for the CAD, NZD and the AUD.

Any comments are welcomed.

Thanks,

Nader
Narafa: Thanks very much, very clear explanation.

Regards
Mx
Just a note about the AUD, in recent years, its not so clear-cut anymore about its 'commodity' currency tag .... as it has been shown to decouple a little from it already.

Commodities used to play a bigger part in the Aus economy, but its role has reduced somewhat recently....

Something to take into consideration...

Ken
Trade what you see, not what you believe.....
  • Post #16
  • Quote
  • Last Post: Oct 10, 2005 9:58pm Oct 10, 2005 9:58pm
Quoting khoong25
Just a note about the AUD, in recent years, its not so clear-cut anymore about its 'commodity' currency tag .... as it has been shown to decouple a little from it already.

Commodities used to play a bigger part in the Aus economy, but its role has reduced somewhat recently....

Something to take into consideration...

Ken
Ya I agree to some extent. The most currency which is commodity driven is the CAD. The bond between the AUD and the NZD and the commodities is weaker. Gold and Copper are the major commodities that affect the Canadian economy, but I doubt Australia and New Zealand are tied heavily to commodities, although they are, but not heavily.

The price action of the currencies will show you how strong is the currency tied with different commodities. The CAD for example has been showing strong gains against the USD, while the AUD and the NZD seem to be topping or at least exhausted.

Thanks,

Nader
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