Commodity currencies resume upward trend

The commodity currencies have been performing well since Russia's aggression against Ukraine. This is due to the fact that this conflict has a huge impact on the global prices of strategic raw materials, such as oil, gas, metals and agricultural products. Australia, New Zealand and Canada, as countries that are among the most important producers and exporters of many key raw materials. These economies also benefited from the outflow of capital from European markets and American growth companies. The capital has gone to places where the risk of experiencing the immediate effects of the war is negligible. Also increasingly broader sanctions imposed by the West and Russia also support commodity currencies. However, it is worth remembering that any headlines regarding easing of sanctions or diplomatic progress could quickly turn the sentiment upside down. 

AUDUSD pair rose sharply in recent days, mainly due to high commodity prices. Nevertheless buyers failed to break above the major resistance zone around 0.7420 on Monday and price pulled back to 200 SMA (red line) which is acting as the nearest support. Today Aussie bulls once again became more active and the pair resumed upward move. Source: xStation5