Commodity Currency

Also called: commodity-linked currency

A currency whose value is closely tied to its country's commodity exports — AUD, CAD, NZD, NOK, ZAR.

Commodity currencies tend to be high-beta risk assets — they rally with global growth and commodity demand, sell off during risk-off events. AUD (iron ore), CAD (oil), NZD (dairy), NOK (oil), ZAR (gold, platinum).