We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
More View more
Real Time News
  • Knowing how to accurately value a #stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/2mjzvYvgSn
  • Previewing the Texas Rangers new home! https://t.co/WITZGSQPlc
  • Thanks for having me on @MartinSEssex https://t.co/fg8uOe16wr
  • The MACD is often used with its default setting when entering trades. However, this versatile indicator can be customized to assist traders in exiting trades too. Learn how to better incorporate the MACD into your trading strategy here: https://t.co/HnY7gzsI2q https://t.co/5F1DSvAXyy
  • What are some factors affecting $GBP as we head into 2020, quarter one? Download your Sterling fundamental forecast with @nickcawley1 here to find out: https://t.co/YfDSYSATK9 https://t.co/ANFLIuDY4J
  • Trading Global Markets new #podcast features @DailyFX Anlayst @PeterHanksFX , who discusses what assets would benefit in the next #recession. Tune into this new podcast episode hosted by @MartinSEssex here: https://t.co/Twr44cZ1GB https://t.co/llKzvZGDpQ
  • The #Euro remains weak against a range of currencies and any move higher is struggling to gain traction as the single currency continues to be sold-off. Get your #EUR technical analysis from @nickcawley1 here: https://t.co/9B2m0kmd4d https://t.co/ZENxpC59mP
  • The Indian Rupee 2020 outlook is bearish as India faces stagflation risk amid rising onion and crude oil prices. $USDINR may rise in the medium-term as the RBI defers hiking rates. Get your market update from @ddubrovskyFX here: https://t.co/lRrlZjAQDw https://t.co/mFv1EOYMjG
  • The $GBP may be on the cusp resuming a 12-year downtrend against the US Dollar as signs of topping emerge at pivotal chart resistance. Get oyur market update from @IlyaSpivak here:https://t.co/9rM3OjWmBA https://t.co/sUWcSFruHw
  • The $NZD may be on average at risk to further losses against its major counterparts such as the US Dollar and Japanese Yen. Where to for NZD/USD and NZD/JPY from here? Find out from @ddubrovskyFX here:https://t.co/OFjePKYdCb https://t.co/eo1c6QAVd8
Australian, New Zealand Dollars Menaced by Resource Nationalism

Australian, New Zealand Dollars Menaced by Resource Nationalism

2018-10-26 00:30:00
Dimitri Zabelin, Junior Currency Analyst


  • Resource nationalism is on the rise amid firming global growth
  • Emerging markets vulnerable, face further risk of capital outflow
  • Australian and New Zealand Dollars may suffer amid uncertainty

Check out our Q4 forecasts to learn what will drive key asset price movements through year-end!


The rise in global growth – after suffering in the shadow of the 2008 Great Recession – has triggered the rise in resource nationalism. It is the process in which states exert greater control over their natural resources. This frequently occurs as demand for inputs rises, which in turn fuels price gains.

Private investors – particularly those overseas – are frequently elbowed out or have to incur a higher cost in order gain access. These often come in the form of having to pay higher royalties for the extracted resources.

The rise in commodity prices has driven a wedge between investors and the state’s strategic interests.

Local politicians – out of a desire to boost their political clout – are imposing higher regulatory costs and diverting profits away from foreign shareholders to distribute them locally. There have also been threats of expropriation without compensation, particularly from the South African government.

Mining companies all over the world have cited resource nationalism and political risk via government intervention as the biggest obstacle to further investment. Companies are less likely to invest in a country where the regulatory terrain is constantly changing, and often to their disadvantage.


Resource nationalism has been resurfacing in emerging markets, particularly in Sub-Saharan Africa. The Tanzanian government earlier this year implemented new regulatory measures on gold that required foreign-owned mining companies to provide shares to local firms and the state.

In Zambia, raw and refined copper combined account for 80% of all their exports. The government is planning to increase mining taxes and raise the royalties by 1.5%. The current range is between 4-6%. The Global X Copper Miners ETF has been falling this year from rising political risk associated with resource nationalism.

The Democratic Republic of the Congo (DRC) – which happens to be the largest exporter of cobalt – has undertaken a similar set of measures. The government put forward a new mining code that increased royalties from 2% to 3.5%. Glencore, the largest producer of cobalt, has had their stock tumble this year as uncertainty ravages the market. They also faced legal challenges from the DRC.

Resource nationalism and trade wars negatively affecting commodities

Glencore Stock, Global X Copper Miners ETF, Silver Futures - Daily Chart

Resource nationalism is also seen in Asia. In the Philippines, President Rodrigo Duerte has threatened miners he would “tax [miners] to death”. There is also concern that Indonesia and Mexico may follow a comparable set of policies.


The rise of this kind of resource-oriented protectionism is yet another among a multitude of factors that are weighing down emerging markets. The raging trade wars fueled by the recent surge in US-led protectionism and the strengthening US Dollar – the latter a function of an increasingly hawkish Federal Reserve – have been the primary forces driving global risk aversion.

Many developing countries have their debt denominated in the Greenback. This has made it more difficult for governments in emerging markets to pay back their debt, especially against the backdrop of a global slowdown. Cycle-sensitive assets like the Australian and New Zealand Dollar have also been on a steady decline since the beginning of the year.As risk appetite continues to fade among investors, the Aussie, Kiwi, emerging markets and other growth-anchored assets are likely to suffer.

Risk-sensitive assets decline as global risk increases

Emerging Markets, Australian Dollar, New Zealand Dollar - Daily Chart


--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.


News & Analysis at your fingertips.