Predicting the next move in the markets is the key to making money in trading, but putting this simple concept into action is much harder than it sounds. Professional forex traders have long known that trading currencies requires looking beyond the world of FX. The fact is that currencies are moved by many factors - , politics, interest rates, economic growth, and so on.
More specifically, since economic growth and exports are directly related to a country\'s domestic industry, it is natural for some currencies to be heavily correlated with commodity prices. The top three currencies that have the tightest correlations with are the Australian dollar , the Canadian dollar and the New Zealand dollar .
Other currencies that are also impacted by commodity prices but have a weaker correlation are the Swiss franc and the Japanese yen . Knowing which currency is correlated with what commodity can help traders understand and predict certain market movements.
On this chart you can see
1. Green - XAUUSD
2. Yellow - NZDUSD Currency
3. PINK - AUDUSD
4. ORANGE - USDCAD
5. MAIN CHART - OIL INDEX INDEX-NY
Hope this helps so you can look at any of your choices to compare.