Commodity Currencies AUD and NZD Gain as Risk Sentiment Rises

Leading commodity currencies AUD and NZD are registering highs against the US dollar on Friday as markets turn increasingly hopeful that the

Written by: Aiswarya Gopan • Friday, December 24, 2021 • 1 min read

• Last updated: Friday, December 24, 2021

Commodity Currencies AUD and NZD Gain as Risk Sentiment Rises

Leading commodity currencies AUD and NZD are registering highs against the US dollar on Friday as markets turn increasingly hopeful that the Omicron variant would not threaten the progress the global economy has made in recovering from the pandemic driven downturn. At the time of writing, AUD/USD is trading at around $0.722.

During the previous session, the currency pair had touched the highest levels seen since five weeks, although since then, it has eased lower on profit taking. So far this week, AUD/USD has strengthened by as much as 1.5%, rebounding after touching a 13 month low in recent sessions.

Even as several parts of Europe bring back lockdowns and restrictions during the holiday season to contain the spread of infections, several states in Australia have asked their residents to wear masks in public and observe social distancing. State governments down under have assured their citizens that they do not plan on imposing lockdowns again, thanks to the widespread rollout of COVID-19 vaccine across the country.

AUD/USD

Meanwhile, NZD/USD is also trading close to the highest levels seen in three weeks after having gained 1.3% so far this week. Both currencies have been making moves upward on the back of a return in risk appetite among investors as experts state that the Omicron variant may not have as severe an impact as the previous Delta strain of COVID-19.

Looking ahead, the AUD/USD could experience some volatility around the second half of January on the release of employment and inflation data. On the other hand, a key upcoming fundamental driver of price action in NZD/USD will be the RBNZ meeting towards the end of February where the central bank could announce one more rate hike.

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ABOUT THE AUTHOR See More

Aiswarya Gopan

Financial Writer & Editor - Asia & Europe Desk

Aiswarya Gopan is a financial journalist, editor, and content strategist with more than 19 years of experience across financial markets, fintech, blockchain, and technology. She has worked with leading cryptocurrency exchanges, including BingX and KuCoin, driving content strategy, market research, and editorial initiatives covering digital assets, DeFi, Web3, and global financial markets. Drawing on a background in cybersecurity, technology journalism, and market research, Aiswarya specializes in translating complex financial and blockchain developments into clear, timely insights. At FX Leaders, she covers cryptocurrency, stocks, forex, and macroeconomic developments across the Asian and European trading sessions.