In the foreign exchange market there are three currency pairs that are commonly referred to as the “commodity currencies,” which are the USD/CAD, AUD/USD and the NZD/USD. The reason for this nickname is that the economies of Canada, Australia, and New Zealand are largely based on their commodity markets (such as oil, timber, and agriculture) and during times of economic duress it is common for traders to move their money from the US dollar into these currencies to try and hedge any potential losses.

November 16th, 2009
Money maker
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