Commodity currencies extend gains as positive risk sentiment is kicking in
The USD is now the weakest currency on the major bloc, meanwhile the NZD and CAD are extending gains on the day. Risk sentiment is relatively positive to start off the new year, and that's helping to give commodity currencies a boost.
In Asian equity markets, the Hang Seng index is up by 1.78%, Kospi is up 0.44%, Shanghai Composite up 1.03%, and CSI 300 index is up by 1.21%. That's quite a positive tone in the major Asian indices as we kick off 2018.
Meanwhile, in commodities we are seeing that gold is staying above $1,300 - now near highs on the day at $1,308.73 (up by 0.47%). Oil is also higher on the day as brent oil is trading 0.39% higher at $67.13 and WTI crude is up 0.35% at $60.63.
Positive tone in equities, higher commodity prices. The standard recipe for risk-on markets.