In this article, We learn about "Comdoll".Let's Go!
Comdolls is a nickname for the term "commodity dollar."
Currencies like Australian, Canadian and New Zealand are called “comdolls” because their respective economies are highly dependent on exporting goods .
Goods are used as materials in the production of goods or services.
Australia is a large exporter of iron ore and other minerals, New Zealand's economy is closely tied to dairy, meat and timber production, and Canada is known for its large oil exports.
As a result, their currencies usually move with the prices of these goods.
For example, if the price of oil rises, the Canadian dollar tends to appreciate because higher oil prices mean higher revenues for the Canadian oil industry, which can strengthen the value of the currency.
Conversely, if commodity prices fall, the value of these currencies tends to fall.
Therefore, Forex traders who trade these currency pairs often focus on commodity prices to predict the movement of these currencies.
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