Commodity currencies are leading losses in the forex market today, what is the reason?

Arabictrader.com - The opening of the American session of the global currency market witnessed a significant decline in risk appetite, which caused varying losses for 4 of the 8 major currencies traded in the market, especially the commodity currencies.


Commodity currencies are leading losses in the forex market today, what is the reason?


The Australian dollar's losses topped the day's trading, followed by the New Zealand dollar, followed by the Canadian dollar, and finally the British pound, which incurred the greatest losses.


The losses of the aforementioned four currencies ranged between 0.15% and 3.11%, and the following are the main reasons that pushed each currency to decline today:


The Australian dollar leads the currency market losses


The Australian dollar opened the American session of the currency market today, incurring a huge amount of losses compared to its peers from other major currencies, to decline by 3.11%.


The Australian currency's losses were mainly driven by the higher inflation data released yesterday, which showed that core inflation for Australia was rising, just one week after the negative employment data was released.


This comes after the Reserve Bank of Australia raised rates less than the market expectations of its meeting earlier this month, contenting itself with an increase of only 25 basis points.


On the other hand, the Chinese Minister of Economy announced this morning that the government expects to face challenges in the level of demand for Chinese goods during the coming period, amid the exacerbation of the global economic crisis, and due to the strength of trade relations between China and Australia, these statements pushed the Canadian dollar to decline in Currency market today.


The New Zealand dollar is the second losing currency


The New Zealand kiwi opened the US currency market with the second largest loss, but far ahead of the Australian dollar as it fell 1.16% against the other major currencies.


This was also driven by the statements of the Chinese Minister of Economy regarding the decline in demand for Chinese exports in the coming period, especially after the data released yesterday showed a significant decline in business confidence in New Zealand.


The Canadian dollar is the third in terms of currency losses


The Canadian currency continued to extend its losses during today's trading, declining by 0.44% at the beginning of the US currency market session.


This was largely driven by the interest rate decision issued by the Bank of Canada yesterday, during which it raised the interest rate less than the market expectations, as it only raised it by 50 basis points, while expectations indicated it would raise it by 75 basis points.


The British pound is the lowest losing currency


The British Pound saw some marginal losses at the beginning of the US currency market session, falling by 0.15%.

The losses of the sterling were largely due to the British government’s announcement yesterday to postpone its issuance of the general budget, although the sterling pound had received some support yesterday as a result of Rishi Sunak, the former Minister of Finance, assuming the position of British Prime Minister, and the British currency fell today due to the strong rise of the index. U.S. dollar.

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