Friday, May 31, 2013

Are commodity currencies going to continue falling

We have seen commodity currencies: Australian dollar, New Zealand dollar and to some extent Canadian dollar falling for some time now. Will the fall continue to the next month? I think it won't. We are having a rate decision coming from Australia next week on Tuesday (on the fourth of June) and this might change the course of a current downward trend in commodity currencies. If they do not decrease interest rates and refrain from any dovish comments market will most probably change their sentiment towards commodities (at least towards Australian dollar).

Looking at such currency crosses as eur/aud and gbp/aud you can clearly see that they have overextended their rise and are at important resistance levels. So, sit down during the weekend and do your own homework regarding commodity currencies. This can help you to prepare for profitable trading next week.