10 Jul 2015
China boosts commodity currencies
FXStreet (Mumbai) - The rise in the Chinese stock markets for the second day strengthened iron ore prices and commodity linked currencies – AUD, NZD, while gains in oil is supporting the CAD.
The Aussie was sold aggressively earlier this week as iron ore prices tumbled in sync with the Shanghai composite index. But the relief rally in the Shanghai Composite boosted iron ore and in turn AUDUSD. A similar move is already being witnessed in the NZD/USD pair.
The AUD/USD pair rose to a high of 0.7496, before paring gains to trade at 0.7458. Meanwhile, the NZD/USD pair rose to 0.6772 before paring gains to trade at 0.6752. Meanwhile, the 1.71% gain in the WTI Crude futures had pushed the USD/CAD lower to 1.2672, before it recovered to trade above 1.27.
The Shanghai composite index rose by 4%, after having jumped 6% in the previous session.
The Aussie was sold aggressively earlier this week as iron ore prices tumbled in sync with the Shanghai composite index. But the relief rally in the Shanghai Composite boosted iron ore and in turn AUDUSD. A similar move is already being witnessed in the NZD/USD pair.
The AUD/USD pair rose to a high of 0.7496, before paring gains to trade at 0.7458. Meanwhile, the NZD/USD pair rose to 0.6772 before paring gains to trade at 0.6752. Meanwhile, the 1.71% gain in the WTI Crude futures had pushed the USD/CAD lower to 1.2672, before it recovered to trade above 1.27.
The Shanghai composite index rose by 4%, after having jumped 6% in the previous session.