Categories
Search
 

Web

TigerShark
Popular Authors
  1. Dave Mecklenburg
  2. Momentum Trader
  3. Candlestick Trader
  4. Stock Scalper
  5. Pullback Trader
  6. Breakout Trader
  7. Reversal Trader
  8. Mean Reversion Trader
  9. Frugal Trader
  10. Swing Trader
  11. Canslim Investor
  12. Dog Investor
  13. Dave Landry
  14. Art Collins
  15. Lawrence G. McMillan
No popular authors found.
Website Info
 Free Festival of Traders Videos
Article Options
Popular Articles
  1. A 10-Day Trading System
  2. Use the Right Technical Tools When You Trade
  3. Which Stock Trading Theory Works?
  4. Conquer the Four Fears
  5. Advantages and Disadvantages of Different Trading Systems
No popular articles found.
Which Commodity Is The Aussie Dollar Tracking?
By Kathy Lien | Published  02/1/2011 | Currency | Unrated
Which Commodity Is The Aussie Dollar Tracking?

The Australian dollar is on a tear this morning thanks to the upbeat tone of the Reserve Bank and their nonchalant comments about the floods. As a commodity currency, the Australian dollar has a very strong correlation with commodity prices. However contrary to popular beliefs, the Aussie’s correlation with gold prices have not been that strong.

Instead, the commodity that it has a strong correlation with is copper, which rose to a record high today. For the past 20 years, the correlation between copper and the Aussie has exceeded 70 percent. Over the past three years, the correlation was as high as 93 percent. Although copper may not be one of Australia’s top commodity exports, it is still equivalent to more than AUD$5 billion of annual trade. The following chart shows the correlation between the AUD/USD, Copper and Gold.

 

Kathy Lien is Director of Currency Research at GFT, and runs KathyLien.com.