Question: What is the entire correlation between currencies and raw materials? The gold with the Australian and the WTI with the Canadian dollar but I would like to know all or the most important ones.

Question: What is the entire correlation between currencies and raw materials? The gold with the Australian and the WTI with the Canadian dollar but I would like to know all or the most important ones.

Answer

Almost all commodities are quoted in dollars, which means that there is an inverse correlation between the value of the dollar and that of raw materials. Currencies such as the Australian, the Canadian, the Norwegian krone are currencies of countries whose growth is closely linked to the exploitation of the raw materials they have. Therefore, when the value of these raw materials falls, the price of their currencies suffers, weakens because the macroeconomic situation worsens.