Commodity Currencies Rise as Oil Prices Hit $100 and Gold Rallies $23
The Australian and New Zealand dollars are up strongly today thanks to a sharp rise in gold prices and broad dollar weakness.
Investors are piling into gold as an inflation hedge and this is making $900 or $1000 an ounce a growing possibility. These moves are partially due to rise in energy prices. Oil hit $100 on an intraday basis as supply and demand concerns continue to grow. Unfortunately USD/CAD has not budged because the Canadian dollar has been pressured by CAD/JPY selling throughout the day. With the combination of weaker US economic data and stronger oil prices, we expect this to catch up to the loonie over the next 24 to 48 hours.