The Australian, New Zealand and Canadian dollars edged higher today on the heels of a slight drop in the US dollar and modest rise in commodity prices.
One of the biggest stories in the world of commodities was China’s agreement to pay nearly double for iron ore. This will have a significant affect on the prices of Chinese goods, which could eventually impact prices globally. No country has managed to escape the global inflation crisis including China. The Australian dollar on the other hand is benefitting from British Gas’ A$13.8 billion hostile bid for Origin Energy Ltd. If this deal goes through, it will most likely include a currency transaction in favor of the Australian dollar.