Markets on Wednesday: Commodity Currencies Take Control - Forex News by FX Leaders

Markets on Wednesday: Commodity Currencies Take Control

Posted Wednesday, March 7, 2018 by
Rowan Crosby • 1 min read

Much of the news around at the moment is still surrounding US President Trump and his proposed tariffs. Despite the debate, we saw that it was the commodity currencies that gained some ground in trade yesterday.

The commodity currencies are considered to be the currencies of the nations that have a strong commodity export base. So for the most part that’s Australia, Canada and New Zealand. All three gaining ground against the USD.

Meanwhile, Bitcoin (BTC) has run into some shaky ground. We have been trying to push into the 12,000 level for some time, but yet again price failed. It comes on the back of limited newsflow and at a time when price is doing it’s best to maintain a bid.

The USD Falls Away

Key support is getting tested as we speak around the 89.50 level. Price has been weak across the board during the US session and it appears the dollar bulls have run out of steam.

The news of steel and aluminium tariffs hasn’t helped and we are now trying to see if there is a way for the USD to navigate these waters.

There is very little support below and we could very well see more downside ahead. If we break the current level I suspect we are in for a move back to 88.50 in the near future.

US Dollar Index (DXY)- 240 min Chart.

 

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