While India is dealing with one of the worst health crises in its history, its leading stock indices are holding steady. The stability is likely linked to the rise in heavy commodity prices such as copper and aluminum. Indian heavy industry companies included in these indices are benefiting greatly from the increase in commodity prices. The share price in some heavy manufacturers is up by more than 20% over the month. With the rise in commodity prices, the NRI has strengthened to yearlong highs against the USD. In contrast, the NRI is struggling to gain ground against its other major partners.
The Australian Dollar has seen a strong bull rally- up 12% from its March lows. Now bulls are edging for the currency to push higher.
A possible push to 75c against the U.S dollar is a level not seen since May 2018. During that period where it first dipped below 75c, there were many retests in the
Commodity currencies are set to advance as manufacturing and oil usage rise across the world. The Australian dollar and the Canadian dollar have been stuck within their respective consolidation zone, strengthening over the past couple of days. The correlation between commodity currencies and commodity prices remain relatively strong, with the Bloomberg commodity index advancing 2.5% to 63.24, the highest since the start of April.
What currency pair is poised to bounce back in the recovery? Since the start of the Coronavirus, the Australian Dollar has depreciated sharply against the US Dollar. However, history has shown to repeat itself in regards to economic shocks and this currency pair.