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Commodity currencies have been in for a bit of a roller coaster lately. And there are some signs in the economic data that show it’s likely to continue!
For the Aussie and it’s Kiwi counterpart, there are quite a few indicators pointing to further weakness in the coming months. The question is, though, whether their exchange counterparts will offset the trend.
One of the more recent events that have put a damper on interest in commodity currencies was the official inversion of the bond yield curve on Wednesday.
We previously discussed what this means in terms of a recession, but how does that affect other currencies? For that, we have to analyze the influence of the trade war, and the recent dip in the Chinese currency.
The Trade War is Still On
A few days ago the Trump administration disclosed that planned tariffs on Chinese goods would be delayed, which the market interpreted as a cooling of t...
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