Australia's ties to China and the 'hard' commodities it produces have fostered a historical relationship between the local currency and precious metals. The value of the Canadian Dollar is strongly correlated with the price of crude oil as the country remains a dominant exporter of the commodity. Both currencies are therefore sensitive to broader commodity price trends.
The overwhelming sense of dread and high volatility plaguing the markets through the end of the past year is slowly starting to lift. US equities have led risk trends to a four-week recovery that has overcome key levels while the Dollar has just recently saved itself from a full bearish reversal. Will this sense of recovery continue?