Some Currencies
When commodity prices rise the currencies of commodity producing countries appreciate against the USD. Generally, anyway.
Australia produces, among other things, iron oar, copper, gold, coal.
Canada produces all those things as well as oil and gas.
The Swiss, it seems, refine gold. In any case the Swiss currency often moves in tandem with the gold price.
The Euro is the “anti dollar” seated at one end of a teeter totter with the US dollar on the other.
The Australian dollar looks like it may have topped out for now. Could be bearish for Gold and commodities.
Australia Dollar – $XDA Daily
The Swiss Franc is now in decline. Is that a bear flag forming?
Swiss Franc – $XSF Daily
The Canada Dollar daily chart is not showing a breakdown, at least not yet. However the weekly chart (not shown) closed on Friday with a doji candlestick (indecision)
Canada Dollar – $CAD Daily
I still read the EURO as bearish (and therefore am bullish on the dollar) but its taking its own sweet time. Notice the stochastic oscillator has just about reached bottom. A bounce from here should be good for commodities and the PMs. Not sure that will happen any time soon though.
Its possible its the rising interest rates that are putting a lid on commodities. Another factor might be a slowing China economy.
Brilliant post silver fox you are one of the first to have realised that the higher USD is a game changer and that it will impact not only commodities but a whole range of assets! Well done sir! And nice charts…
Norvast! Welcome back. Your presence has been sorely missed.
I was thinking about you when I put this currency post together.
Plus 1 Foxy
Charts and Analysis first class