The most popular commodity currencies that traded are of New Zealand, Canada and Australia.
The positive correlations have between the commodity currencies besides an export commodity is very significant. One of the important matters that a Forex trader should pay attention is the value of commodity of currencies that usually fall and rise in tandem according to the value of main commodity exports of the country. While most of the countries are importing oil rather than exporting, Canada is regarded as one of the developed nations and the great exporter of oil.
Values of both trade balance of country and commodity with respect to commodity are significant things in the stage of valuation of commodity currencies. While a long term commodity trend prices become apparent it will be followed by correlated currency pairs.
While other countries are exporting commodities as well, the exports made by these countries will be having more impact of significance on country’s currency. Another notable and important commodity of Canada is Aluminum export which gives about another 8 billion dollars per annum.
So that every small changes on the price of gold will make a significant impact on the GDP of the entire country and the value of the country’s currency.
Commodity prices are said to lead currency prices which will result forex traders a great opportunity to make large profit. Canada has been experiencing dramatic growth in the aspects of export of other valuable metals such as Zinc, Nickel and Copper.
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