Excerpt from: Forex Commentary
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| March 17, 2010 | | Aussie in currency trading on the FX market | The Australian dollar is moving higher in forex trading today as gold prices gain. Gold prices are moving higher as the Fed expresses its belief that the labor market is stabilizing. The Aussie is following suit in currency trading on the FX market.
The Australian dollar is commodity currency, which means it often moves in tandem with commodity prices. Aussie is sensitive to gold because Australia relies on gold for a sizable chunk of its economy. As gold prices rise, they help support Australian economic growth, and help support the Aussie in currency trading.
With gold heading higher, and with U.S. stock futures pointing to a higher open, it is little surprise that investors are looking for something a bit riskier as well. Therefore, turning to the Aussie, with its higher returns, makes sense in forex trading. At least for now.
| Topic Tags: Aussie currency trading, commodity currency, currency trading, forex trading, FX market, gold prices | |
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