Commodity Currencies Extend Gains, New Zealand Dollar Outperforms

Commodity currencies rebounded forcefully against the spectrum of top counterparts, with the New Zealand Dollar out-peforming to take the top spot among hte majors heading into the end of the trading week. Still, a return to weakness in equities continues to threaten the risk-linked currencies: the MSCI World Stock Index has recouped last week’s losses but failed to break to a new high, keeping the possibility of a double top on the table. Will the rally falter and bring down the commodity bloc with it, or will risky assets continue to gain in the days ahead? Our DailyFX team weighs in and offers their top ideas for trading CAD, AUD, and NZD.