Currency Note Worldwide

Commodity backed currencies open 2014 strongly

By Ricky Bean January 6th, 2014

Elsewhere on Friday, we saw the commodity-backed currencies perform well amid sentiment in the market that raw-material prices have reached a low, and that over coming months we will see a surge in prices. The Canadian and New Zealand dollars gained, but the stand-out performer was the Australian dollar. After being one of the worst performing currencies in 2013, it hit its biggest weekly gains in two months as traders speculated that recent declines have been too rapid. We saw a similar pattern with the Japanese yen, showing significant strength over last week after an extremely poor end to the year. Gains in platinum and gold prices across the globe also triggering buying of South African rand on Friday, with the two metals being among the country’s main exported commodities. Out of Australia this week, we have trade balance, building approvals, and retail sales figures. From Canada we have building permit and employment figures, and we also have inflation data out of Switzerland. Get in touch with your trader for a live rate in what will be a busy week.