| In a day where Aussie was dragged lower by falling gold prices, Deutsche Bank released an interesting paper where they claim to have found “stronger evidence that currencies can help predict commodity prices rather than vice versa.”
According to the bank, the correlations albeit unable to offer immediate results for currency forecasters, indeed can help improve commodity forecasts. Here is what the bank believes traders should keep an eye on: “We find that NZD can help predict sheep prices, AUD and CAD can predict coking coal, while CAD also has predictive power over the BoC metals index. Overall, the NZD has the tightest relationship with commodities in both directions of causality.”..............................................Full Article: Source
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