Excerpt from: Forex Training
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| May 21, 2007 | | Learning about commodity currencies | One of the forex trading terms that you are likely to come across as you begin currency trading is "commodity currencies." It is important to understand what analysts and news pieces mean when they mention these commodity currencies, as some of your forex trading strategy relies on commodity currencies.
Commodity currencies
Commodity currencies are those that are tied to the exports of their countries. Commodity currencies rely on the prices they get for things like metals or energy products (such as oil) to support their currencies. When commodities are doing well, commodity currencies are stronger in forex trading. As commodity prices fall, these currencies weaken on the FX market.
The main commodity currencies are:
- Canadian dollar (CAD)
- Australian dollar (AUD)
- New Zealand dollar (NZD)
An emerging market commodity currency that is receiving more interest is the South African rand (ZAR).
| Topic Tags: commodity currencies, currency trading, emerging market currency, forex trading, forex trading strategy, forex trading strategy commodity currencies, forex trading terms, forex training | |
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