The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

FX: The complexities of commodity-linked currencies

Macro and monetary policy factors are affecting some currencies more than traditional commodity triggers.


Higher commodity prices are generally good news for the likes of the Canadian dollar, Russian rouble and Australian dollar, but other factors – most notably central bank monetary policy – have weighed on the strength of these currencies during the past 12 months.

A number of commodity-linked currencies have a high correlation to crude oil in particular, and with the wider basket of commodities they track having been subdued during the past year, both AUD and CAD have remained relatively weak and to the bottom end of recent ranges.

During the period of weakening crude oil prices in the final quarter of 2018, the Australian and Canadian dollars both experienced double-digit falls.


John Goldie,

Argentex FX dealer John Goldie observes that other commodities relevant to these currencies – such as the agricultural basket for AUD – have had varying degrees of volatility and therefore a less notable impact.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree