AUDUSD Daily Forecast Q3 | W37 | D8 | Y25📊 AUDUSD Daily Forecast Q3 | W37 | D8 | Y25
🔍 Analysis Approach:
I’m applying Smart Money Concepts, focusing on:
Identifying Points of Interest on the Higher Time Frames (HTFs) 🕰️
Using those POIs to define a clear trading range 📐
Refining those zones on Lower Time Frames (LTFs) 🔎
Waiting for a Break of Structure (BoS) for confirmation ✅
This method allows me to stay precise, disciplined, and aligned with the market narrative, rather than chasing price.
💡 My Motto:
"Capital management, discipline, and consistency in your trading edge."
A positive risk-to-reward ratio, paired with a high win rate, is the backbone of any solid trading plan 📈🔐
⚠️ Losses?
They’re part of the mathematical game of trading 🎲
They don’t define you — they’re necessary, they happen, and we move forward 📊➡️
🙏 I appreciate you taking the time to review my Daily Forecast.
Stay sharp, stay consistent, and protect your capital
— FRNGT 🚀
AUDUSD
AUDUSD Will Move Higher! Buy!
Here is our detailed technical review for AUDUSD.
Time Frame: 1D
Current Trend: Bullish
Sentiment: Oversold (based on 7-period RSI)
Forecast: Bullish
The market is testing a major horizontal structure 0.655.
Taking into consideration the structure & trend analysis, I believe that the market will reach 0.662 level soon.
P.S
Please, note that an oversold/overbought condition can last for a long time, and therefore being oversold/overbought doesn't mean a price rally will come soon, or at all.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Like and subscribe and comment my ideas if you enjoy them!
Chronex | AUDUSD - BUY - A new high ahead🚀 Yo Chronex — Bias for today is live!
🎯 100 % model-driven.
No trend-line art, no gut calls. Just a repeatable institutional process delivered every day at London Open
CHECKLIST
H4 Structure:
H4: Order flow:
H1 Structure:
H1 Order flow:
m15 Order flow:
Entry Model:
Context Today:
🧠 What Chronex does (bird’s-eye view)
- Scans all 28 major FX pairs every session.
- Ranks each currency’s relative strength / weakness from multi-TF data.
- Pairs strongest vs. weakest to create a tight outlook list.
- Adds built-in risk filters → posts one clean table: *Direction · Conviction · Entry zone · SL*.
📍 Today’s Playbook:
Risks
1. Do we have economic high impact news release?
2. Any higher-timeframe counter-trend zones?
3. Has better zone above/below?
Verdict:
💬 Drop questions, challenge the outlook, or share your own setups below!
EUR/USD | EUR/USD Breaks 1.17 – Eyes on 1.176+ Targets! (READ)By analyzing the EUR/USD chart on the 4-hour timeframe, we can see that the price held at the 1.16 demand zone as expected and managed to climb above 1.17 with confirmation. Currently, it’s trading around 1.173. If the price can break the 1.174 resistance and close above it, we can expect further upside.
The possible bullish targets are 1.176, 1.177, and 1.179.
Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me !
Best Regards , Arman Shaban
AUDUSD: Expecting Bearish Movement! Here is Why:
Balance of buyers and sellers on the AUDUSD pair, that is best felt when all the timeframes are analyzed properly is shifting in favor of the sellers, therefore is it only natural that we go short on the pair.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
❤️ Please, support our work with like & comment! ❤️
AUD/USD Rally Attempts, Will Buyers Stay in Charge?Market Analysis: AUD/USD Rally Attempts, Will Buyers Stay in Charge?
AUD/USD started a decent increase above 0.6580.
Important Takeaways for AUD USD Analysis Today
- The Aussie Dollar started a decent increase above 0.6545 against the US Dollar.
- There was a break above a contracting triangle with resistance at 0.6530 on the hourly chart of AUD/USD.
AUD/USD Technical Analysis
On the hourly chart of AUD/USD at FXOpen, the pair started a fresh increase from 0.6500. The Aussie Dollar was able to clear 0.6520 to move into a positive zone against the US Dollar.
The bulls cleared a contracting triangle with resistance at 0.6530. There was a close above the 0.6550 resistance and the 50-hour simple moving average. Finally, the pair tested 0.6585. A high was formed near 0.6588 and the pair recently started a consolidation phase.
There was a move below the 23.6% Fib retracement level of the upward move from the 0.6501 swing low to the 0.6588 high. On the upside, the AUD/USD chart indicates that the pair is now facing resistance near 0.6585.
An upside break above 0.6585 might send the pair further higher. The next stop is near 0.6640. Any more gains could clear the path for a move toward the 0.6700 handle.
On the downside, initial support is near the 50% Fib retracement at 0.6545. The next area of interest could be near the 50-hour simple moving average at 0.6535.
If there is a downside break below 0.6535, the pair could extend its decline toward the 0.6500 zone. Any more losses might signal a move toward 0.6485.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Q3 | W37 | D5 | Y25 AUDUSD ForecastQ3 | W37 | D5 | Y25 AUDUSD Forecast
Moving into Week 37, my highest-probability bias is firmly long. The Week 36 candle closed bullish above the Weekly 50 EMA, signaling strong buying pressure around that level. Trading in line with the higher timeframe, liquidity clearly favors the buy side.
-Continued long breaks of structure confirm directional strength.
- Best long entries will come from the lows of the range, while best short term shorts will be from the highs.
This doesn’t rule out short opportunities, but they should be managed aggressively as they run counter to the overall bias.
Here’s how I plan to execute long positions: on the chart you’ll notice a mix of colors—this is my method of identifying and aligning order blocks and voids across multiple timeframes to build confluence for entries.
High-Probability Zones
Zone 1
Daily 50 EMA
Previous daily wick low
4H & 1H order blocks
4H 50 EMA
Final higher low before last market close
👉 Heavy confluence in this zone. I’ll look for longs from here during London Open, ideally price opens in the LDN session at the low of the Asia range. Adding further confluence to the positon.
Execution: Wait for a 1-min break of structure post London open inside the zone from a refined 15-min order block created in Asia or the 15' order block below the range.
Zone 2
Weekly 50 EMA
Previous week’s wick imbalance
4H & 1H order blocks
👉 Strong confluence but caution is needed: at this point, the daily candle may close below the Daily 50 EMA, reducing long confidence.
Execution: Safer play is to wait for the daily to reclaim above the Daily 50 EMA, then enter on an imbalance fill. Patience required—don’t rush.
Zone 3
Daily, 4H & 1H order blocks
Previous week’s wick imbalance
👉 At these ultimate lows, all EMA confluence is lost. Still, if price reaches this zone later in the week, I’ll be confident in a long. Why? Because the weekly candle is forecasted to close above the Weekly 50 EMA.
Execution: Wait for a clear break of structure in the zone before entering longs.
Key Notes
Zone 1 longs will be managed aggressively (scalps), as price may dip deeper towards Zones 2 or 3 before rejecting higher.
Expect possible fakeouts early in the week, with price dipping below the Weekly 50 EMA before rejecting upward.
Best setups will come from refined 15-min order blocks inside the higher-probability zones.
✅ Summary:
My Week 37 bias remains firmly bullish on AUDUSD. I’ll be focusing on long setups from Zones 1–3, refining with lower-timeframe order blocks and structure breaks. Shorts remain countertrend and will be managed tightly.
FRGNT
FX:AUDUSD
AUD/USD: Bullish Push to 0.65543?As the previous analysis worked exactly as predicted, FX:AUDUSD is setting up for a bullish move on the 1-hour chart , with an entry zone between 0.64930-0.65020 near a key support level.
The target at 0.65543 aligns with the next resistance, offering a solid upside play. Set a stop loss on a close below 0.6482 to manage risk effectively. 🌟
Watch economic data! 💡
📝 Trade Plan:
✅ Entry Zone: 0.64930 – 0.65020 (support area)
❌ Stop Loss: Daily close below 0.6482 to manage risk
🎯 Target: 0.65543 (next resistance)
Ready for this move? Drop your take below! 👇
XAU/USD | Gold at Record Highs – Can NFP Stop the Rally?By analyzing the gold chart on the 12-hour timeframe, we can see that the price continued its rally today, reaching $3,578 and printing a new all-time high (ATH)! After hitting this level, gold made a slight pullback to $3,510. Right now, the price has bounced back and is trading around $3,550.
So far, there are no clear signs on the higher timeframes that gold is ready to reverse from here. For that, we would need to see stronger bearish moves. The current momentum still supports further upside unless proven otherwise. That’s why it’s better to stay patient and wait for a real break or shift in market structure before looking for attractive trade setups.
Also, tomorrow we have the NFP report, which could trigger a drop in gold if the data comes in stronger than expected. Until then, we’ll wait — and if you guys strongly support this post, I’ll share my updated personal analysis a few hours before the release. Stay tuned!
Please support me with your likes and comments to motivate me to share more analysis with you and share your opinion about the possible trend of this chart with me !
Best Regards , Arman Shaban
AUDUSD rebound resistance at 0.6560Trend Overview:
The AUDUSD currency price remains in a bullish trend, characterised by higher highs and higher lows. The recent intraday price action is forming a continuation consolidation pattern, suggesting a potential pause before a renewed move higher.
Key Technical Levels:
Support: 0.6420 (primary pivot), followed by 0.6400 and 0.6370
Resistance: 0.6560 (initial), then 0.6590 and 0.6620
Technical Outlook:
A pullback to the 0.6420 level, which aligns with the previous consolidation zone, could act as a platform for renewed buying interest. A confirmed bounce from this support may trigger a continuation toward the next resistance levels at 0.6560, 0.6590, and ultimately 0.6620.
Conversely, a daily close below 0.6420 would suggest weakening bullish momentum. This scenario would shift the bias to bearish in the short term, potentially targeting 0.6400 and 0.6370 as downside levels.
Conclusion:
AUDUSD maintains a bullish structure while trading above the 0.6420 support. A bounce from this level would validate the consolidation as a continuation pattern. The loss of this level and a daily close below would suggest deeper corrective risk.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
“EUR/USD 15m Outlook | Bullish Bias from Demand ZonePrice is currently balancing between the demand zone (buyers at 1.1607 – 1.1635) and the supply zone (1.1680 – 1.1720).
📌 If demand holds → Expect liquidity grab → retest → bullish continuation into supply.
📌 If supply reacts → Watch for rejection → intraday shorts possible before next rally.
This setup is not about guessing direction — it’s about hacking the structure: let price tell the story, then follow the flow.
AUDUSD Daily Forecast -Q3 | W36 | D4 | Y25📅 Q3 | W36 | D4 | Y25
📊 AUDUSD Daily Forecast
🔍 Analysis Approach:
I’m applying Smart Money Concepts, focusing on:
Identifying Points of Interest on the Higher Time Frames (HTFs) 🕰️
Using those POIs to define a clear trading range 📐
Refining those zones on Lower Time Frames (LTFs) 🔎
Waiting for a Break of Structure (BoS) for confirmation ✅
This method allows me to stay precise, disciplined, and aligned with the market narrative, rather than chasing price.
💡 My Motto:
"Capital management, discipline, and consistency in your trading edge."
A positive risk-to-reward ratio, paired with a high win rate, is the backbone of any solid trading plan 📈🔐
⚠️ Losses?
They’re part of the mathematical game of trading 🎲
They don’t define you — they’re necessary, they happen, and we move forward 📊➡️
🙏 I appreciate you taking the time to review my Daily Forecast.
Stay sharp, stay consistent, and protect your capital
— FRNGT 🚀
FX:AUDUSD
Bearish drop off?The Aussie (AUD/USD) has rejected off the pivot and could drop to the 61.8% Fibonacci support.
Pivot: 0.6556
1st Support: 0.6469
1st Resistance: 0.6589
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
AUD-USD Resistance Ahead! Sell!
Hello,Traders!
AUD-USD keeps growing
But a strong horizontal
Resistance of 0.6568
Is ahead so after the
Retest we will be
Expecting a local pullback
Sell!
Comment and subscribe to help us grow!
Check out other forecasts below too!
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
AUDUSD Daily Forecast -Q3 | W36 | D3 | Y25 NY FORECAST 📅 Q3 | W36 | D3 | Y25
📊 AUDUSD Daily Forecast
🔍 Analysis Approach:
I’m applying Smart Money Concepts, focusing on:
Identifying Points of Interest on the Higher Time Frames (HTFs) 🕰️
Using those POIs to define a clear trading range 📐
Refining those zones on Lower Time Frames (LTFs) 🔎
Waiting for a Break of Structure (BoS) for confirmation ✅
This method allows me to stay precise, disciplined, and aligned with the market narrative, rather than chasing price.
💡 My Motto:
"Capital management, discipline, and consistency in your trading edge."
A positive risk-to-reward ratio, paired with a high win rate, is the backbone of any solid trading plan 📈🔐
⚠️ Losses?
They’re part of the mathematical game of trading 🎲
They don’t define you — they’re necessary, they happen, and we move forward 📊➡️
🙏 I appreciate you taking the time to review my Daily Forecast.
Stay sharp, stay consistent, and protect your capital
— FRNGT 🚀
FX:AUDUSD
AUD/USD BEST PLACE TO SELL FROM|SHORT
AUD/USD SIGNAL
Trade Direction: short
Entry Level: 0.652
Target Level: 0.649
Stop Loss: 0.655
RISK PROFILE
Risk level: medium
Suggested risk: 1%
Timeframe: 1h
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
✅LIKE AND COMMENT MY IDEAS✅
AUDUSD Consolidation support at0.6420Trend Overview:
The AUDUSD currency price remains in a bullish trend, characterised by higher highs and higher lows. The recent intraday price action is forming a continuation consolidation pattern, suggesting a potential pause before a renewed move higher.
Key Technical Levels:
Support: 0.6420 (primary pivot), followed by 0.6400 and 0.6370
Resistance: 0.6560 (initial), then 0.6590 and 0.6620
Technical Outlook:
A pullback to the 0.6420 level, which aligns with the previous consolidation zone, could act as a platform for renewed buying interest. A confirmed bounce from this support may trigger a continuation toward the next resistance levels at 0.6560, 0.6590, and ultimately 0.6620.
Conversely, a daily close below 0.6420 would suggest weakening bullish momentum. This scenario would shift the bias to bearish in the short term, potentially targeting 0.6400 and 0.6370 as downside levels.
Conclusion:
AUDUSD maintains a bullish structure while trading above the 0.6420 support. A bounce from this level would validate the consolidation as a continuation pattern. The loss of this level and a daily close below would suggest deeper corrective risk.
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
AUSSIE H4 | Bearish reversalAUD/USD is reacting off the sell entry which is a pullback resistance that aligns with the 50% Fibonacci retracement and could drop from this level to the downside.
Sell entry is at 0.6519, which is a pullback resistance that lines up with the 50% Fibonacci retracement.
Stop loss is at 0.6556, which is a pullback resistance.
Take profit is at 0.6469, which is a pullback support that aligns with the 61.8% Fibonacci retracement.
High Risk Investment Warning
Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you.
Stratos Markets Limited (tradu.com ):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Europe Ltd (tradu.com ):
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Stratos Global LLC (tradu.com ):
Losses can exceed deposits.
Please be advised that the information presented on TradingView is provided to Tradu (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd.
The speaker(s) is neither an employee, agent nor representative of Tradu and is therefore acting independently. The opinions given are their own, constitute general market commentary, and do not constitute the opinion or advice of Tradu or any form of personal or investment advice. Tradu neither endorses nor guarantees offerings of third-party speakers, nor is Tradu responsible for the content, veracity or opinions of third-party speakers, presenters or participants.
AUD/USD: Bearish Drop to 0.6506? FX:AUDUSD is signaling a bearish move on the 1-hour chart , with an entry zone between 0.6546-0.6553 near a resistance level.
The target at 0.6506 aligns with key support , offering a solid downside play. Set a stop loss at 0.6560 on a close above to manage risk.
This trade boasts an excellent risk-to-reward ratio, making it a compelling opportunity. 🌟 A break below 0.6540 with volume could confirm this drop, driven by USD strength and AUD weakness. Watch U.S. data releases!
💡 Traders can even enter now with proper risk management—adjust position size accordingly. Ready for this move? Drop your take below! 👇
📝 Trade Plan:
✅ Entry Zone: 0.6546 – 0.6553 (resistance area)
❌ Stop Loss: Close above 0.6560 to manage risk
🎯 Target: 0.6506 (key support zone)
Ready for this move? Drop your take below! 👇
AUD: Revisit Key Supply Zone, Potential Short Setup.The AUD Futures 6A1! has revisited a key supply zone established earlier this month, presenting a potential opportunity for another short trade setup. According to the latest COT report, non-commercial traders have increased their short positions, indicating a bearish sentiment. However, it's crucial to keep an eye on the DXY, as recent price movements over the past two days suggest a possible shift in its trend. Given that August often brings uncertainty and lack of clear direction, this environment requires careful monitoring. Consider this analysis as one of several factors in your trading decision-making process.
✅ Please share your thoughts about 6A1! in the comments section below and HIT LIKE if you appreciate my analysis. Don't forget to FOLLOW ME; you will help us a lot with this small contribution.
What Are Commodity Currencies and How Do They Correlate?What Are Commodity Currencies and How Do They Correlate?
Commodity currencies are those tied to the value of a country’s key exports, such as oil, metals, or agricultural goods. Their movements are influenced by shifts in global demand, supply disruptions, and economic policies. In this article, we will explore how commodity prices impact commodity-linked currencies and what traders may need to consider.
What Is a Commodity Currency?
The commodity currency definition refers to currencies issued by countries whose economies rely heavily on exporting natural resources. Their value tends to fluctuate in line with the prices of key commodities like oil, metals, and agricultural goods. When these exports become more valuable, the national economy benefits, often leading to a stronger currency. Conversely, when commodity prices fall, these currencies tend to weaken due to declining export revenues. Several well-known commodity-based currencies fall into this category.
Canadian Dollar (CAD) – Oil and Trade with the US
Canada is one of the world’s largest crude oil exporters, making CAD highly sensitive to oil price fluctuations. A rise in oil prices typically strengthens CAD, as higher revenues improve Canada’s trade balance and economic outlook. CAD also reacts to US economic performance, given that over 75% of Canadian exports go to the US. If US demand weakens, CAD can struggle even if oil prices move in a narrow range.
Australian Dollar (AUD) – Iron Ore, Coal, and China’s Economy
Australia is a major supplier of iron ore and coal, with China as its biggest buyer. AUD often moves in response to Chinese industrial activity and infrastructure investment. If China’s economy slows, reduced demand for raw materials can weigh on AUD. Interest rate decisions from the Reserve Bank of Australia (RBA) also play a role, particularly when rates diverge from global peers.
New Zealand Dollar (NZD) – Dairy and Agricultural Exports
New Zealand is the world’s largest dairy exporter, with milk products accounting for a significant portion of its trade. NZD tends to strengthen when global dairy prices rise, especially when demand from Asia is strong. However, because New Zealand has a smaller, more trade-dependent economy than Australia, NZD is also influenced by broader market sentiment and risk appetite.
Norwegian Krone (NOK) – Oil and Energy Markets
Like CAD, NOK moves with oil prices, but its sensitivity is heightened by Norway’s reliance on offshore oil production. Shifts in European energy policy, such as demand for alternative fuels, can also impact NOK beyond direct oil price movements.
Brazilian Real (BRL) – Agriculture and Metals
BRL is driven by Brazil’s exports of petroleum oils, iron ore, soybeans, and other agricultural products. Political stability and investor confidence in emerging markets also affect BRL, making it more volatile than some other commodity currencies.
Key Drivers of Commodity Prices
Commodities fluctuate based on a range of global economic forces, from supply and demand dynamics to geopolitical shifts and financial market activity. Understanding these factors may help traders analyse price trends and their potential impact on commodity-linked currencies.
1. Global Supply and Demand
The fundamental driver of commodity prices is the balance between production and consumption. When supply is tight due to poor harvests, mining disruptions, or oil production cuts, prices tend to rise. Conversely, oversupply—such as when oil producers flood the market—can push prices lower.
2. Economic Growth and Industrial Activity
The demand for commodities is closely tied to economic expansion. Rapid industrial growth increases demand for raw materials like iron ore, copper, and oil. China, for example, is the world’s largest commodity consumer, meaning its economic cycles have a major impact on global prices. A slowdown in Chinese manufacturing can weaken demand, driving commodities and related currencies lower.
3. Geopolitical Risks and Trade Policies
Wars, sanctions, and trade agreements can disrupt supply chains, affecting commodity availability and prices. Sanctions on oil-producing nations or conflicts in key mining regions can tighten supply, driving prices higher. On the other hand, trade agreements that reduce tariffs can boost commodity exports, influencing prices.
4. Central Bank Policy and Inflation
Higher inflation often pushes commodity prices up, as investors turn to raw materials as a hedge against currency devaluation. Central banks responding with interest rate hikes can curb inflation but may also reduce economic activity, lowering commodity demand.
5. Speculation and Market Sentiment
Commodities are heavily traded in futures markets, where speculative activity can cause price swings. Traders believing in higher future demand can drive up prices, while negative sentiment—such as recession fears—can lead to sell-offs.
How Commodity Prices Influence Commodity Currencies
Commodity currencies don’t just track export price movements—they react to broader economic shifts. Here’s how changes in commodity prices correlate with these currencies:
1. Trade Balance and Export Revenues
When commodity prices rise, exporting nations see higher revenues, improving their trade balance and strengthening their currency. Foreign buyers need to exchange their currency for AUD, CAD, or NOK to purchase commodities, increasing demand. When prices fall, the reverse happens, weakening a commodity currency.
2. Economic Growth and Investment
Higher commodity prices often stimulate economic growth in resource-rich countries, leading to increased business investment and job creation. This can improve confidence in the currency. However, if rising prices contribute to inflation, central banks may intervene, affecting currency performance.
3. Interest Rates and Inflation Control
If commodity price increases drive inflation, central banks may consider raising interest rates to stabilise the economy. These higher interest rates tend to attract investors and create buying pressure in the currency. However, if commodity prices drop sharply, central banks may lower rates to support economic growth, putting downward pressure on the currency.
4. Risk Sentiment and Capital Flows
Commodity currencies are often tied to investor risk appetite. In strong market conditions, investors seek higher yields and favour currencies like AUD, NZD, and CAD. But in times of uncertainty—such as economic downturns or geopolitical crises—investors typically move into so-called safe-haven assets, causing commodity currencies to weaken.
5. Global Supply Chain Disruptions
Natural disasters, political instability, or trade restrictions can disrupt commodity supplies. If this leads to higher commodity prices, it often strengthens commodity currencies. However, if demand falls due to economic downturns, both commodity prices and related currencies can suffer.
Implications for Traders
Understanding how commodity prices affect currencies provides traders with insights into market dynamics. For example, traders regularly track oil price reports, iron ore demand forecasts, or global agricultural market updates.
Because commodity currencies often reflect underlying shifts in global economics, traders frequently monitor economic indicators. Economic indicators from major commodity-importing nations—like China’s manufacturing data—are particularly influential, as they provide clues about future demand trends.
Additionally, commodity-linked currencies often respond strongly to shifts in risk appetite. Traders recognise that positive market sentiment typically lifts these currencies, while concerns about global growth or market instability can trigger weakness. This relationship helps traders assess broader market conditions, including when investors might favour riskier or so-called safer assets.
Interest rate differentials between commodity-exporting countries and other major economies are also closely observed. Traders believe that rising interest rates may attract capital inflows and support currency appreciation, especially if commodity prices remain firm.
The Bottom Line
Commodity currencies are closely tied to global economic trends, supply and demand shifts, and market sentiment. Awareness of these relationships may support traders in creating their forex and commodity trading strategies Monitoring commodity markets, interest rate decisions, and geopolitical events may be helpful when navigating commodity currencies.
FAQ
What Are Commodity Currency Pairs?
Commodity currency pairs consist of a commodity-linked currency traded against another currency, typically a major one like the US dollar. Examples include USD/CAD, AUD/USD, and NZD/USD, where CAD, AUD, and NZD are influenced by commodity prices.
What Is Forex and Commodity Trading?
Forex trading involves exchanging currencies, while commodity trading focuses on raw materials like oil, metals, and agricultural products. Since some currencies are tied to commodities, both markets often move together.
What Is the Most Traded Commodity Currency Pair in Forex?
USD/CAD is known as one of the most traded commodity currency pairs. Canada’s reliance on oil exports makes CAD highly responsive to crude oil prices, resulting in notable currency correlations with oil market movements.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
AUDUSD Daily Forecast -Q3 | W35 | D2 | Y25
📅 Q3 | W35 | D2 | Y25
📊 AUDUSD Daily Forecast
🔍 Analysis Approach:
I’m applying Smart Money Concepts, focusing on:
Identifying Points of Interest on the Higher Time Frames (HTFs) 🕰️
Using those POIs to define a clear trading range 📐
Refining those zones on Lower Time Frames (LTFs) 🔎
Waiting for a Break of Structure (BoS) for confirmation ✅
This method allows me to stay precise, disciplined, and aligned with the market narrative, rather than chasing price.
💡 My Motto:
"Capital management, discipline, and consistency in your trading edge."
A positive risk-to-reward ratio, paired with a high win rate, is the backbone of any solid trading plan 📈🔐
⚠️ Losses?
They’re part of the mathematical game of trading 🎲
They don’t define you — they’re necessary, they happen, and we move forward 📊➡️
🙏 I appreciate you taking the time to review my Daily Forecast.
Stay sharp, stay consistent, and protect your capital
— FRNGT 🚀
FX:AUDUSD