Gold, crude oil moving higher as US dollar softens
Gold and crude oil rally to new heights
USD's influence on commodity prices
Amidst the rising prices of gold and crude oil, the Australian dollar (AUD/USD) has strengthened, trading back above the 0.6500 mark. This movement suggests a correlation between commodity prices and the relative weakening of the US dollar. Gold and US dollar are negatively correlated, with the current correlation between gold and AUD/USD around +0.45. Even with the recent surge in gold, the dollar remains historically strong - AUD/USD having reached as high as 0.9500 in the past decade.
Implications of crude oil's resurgence
The resurgence in crude oil prices also points to potential pressures on the US dollar. Higher oil prices can contribute to the currency's softer stance, as seen in past periods where rising crude prices coincided with lower dollar values. The relationship between crude oil and the dollar underscores the importance of monitoring commodity markets for traders and investors looking to navigate currency fluctuations effectively.
How to trade US dollar
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD pairs
Trading forex requires an account with a forex provider like tastyfx. Many traders also watch major forex pairs like EUR/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
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