Anyone long Australian, New Zealand or Canadian dollars over the past month are being rewarded handsomely as these commodity currencies continue to hit significant highs against the US dollar.
Less than six months ago, many traders could not fathom seeing USD/CAD below parity. Now, it is time to think about whether the Australian dollar will also hit parity against the US dollar. There was no economic data released out of any of the three countries overnight. Instead, the rally was fueled by the continual rise in commodity prices. Gold prices hit a 28 year high while platinum prices rose to an all-time high. Oil prices dropped, but it remains above $80 a barrel. Unless commodity prices reverse significantly, there is nothing to stop these pairs from moving higher.
Written by Kathy Lien, Chief Currency Strategist for DailyFX.com