Resolved Question
Gold's correlation to the AUD pairs?
Since Gold is on the rise, and is now trading at around $1220, should the aussie strengthen? I have heard many said that the AUD is correlated to gold's price. with it's rise, the aussie should also rise as far as I understand.
also can somebody elaborate to me why the aussie is said by so many people to be correlated to gold? thanks!
over 2 years ago
Best Answer - Chosen by Asker
To answer your question, the reason why the Aussie is highly correlated to the price of gold is because gold is one of the major exports of Australia. Just like oil to Canada, gold makes up a sizeable portion of Australian exports. Furthermore, in order to import gold from Australia, like other products, one would need Australian dollars to import gold from Australia. So when the price of gold rises, you can imagine how this affects demand for the AUD.
over 2 years ago
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