Forex News: Commodity Currencies Rise

Commodity Currencies Rise

(RTTNews) - The commodity currencies such as Australia, the New Zealand and Canadian dollars strengthened against major counterparts in the Asian session on Tuesday, as the commodities such as gold and silver prices continue to reach fresh highs after U.S. President Donald Trump's latest tariff threat over Greenland.

Spot Silver prices reached a record high of $94.74 before slightly declining from those levels, while Spot Gold prices reached a new high of $4,690 an ounce overnight and are still trading over $4,650 in early trading.

Due to supply constraints, geopolitical and recessionary dangers, and expectations that the U.S. Federal Reserve would further lower interest rates, both gold and silver experienced their best year in decades in 2025.

Trump announced new 10 percent tariff on European countries starting February 1 and planned to acquire Greenland.

Reports suggest that the EU is considering a retaliatory move that would place tariffs on 93 billion euros of U.S. goods or restrict U.S. firms' access to its internal market. If they do not support the U.S. on the acquisition of Greenland, the tariff may increase to 25% by June 1 if the stalemate continues until then.

France asking the EU to activate "a trade bazooka" which could block some of U.S. access to marketplaces in the EU as a countermeasure.

In economic news, the People's Bank of China kept its one-year loan prime rate unchanged at 3.0 percent, as widely expected. Likewise, the five-year LPR, the benchmark for mortgage rates, was maintained at 3.50 percent.

Previously, the bank had reduced its both LPRs by quarter points in October 2024 and 10 basis points each in May 2025.

In the Asian trading today, the Australian dollar rose to a 6-day high of 106.51 against the yen and a 5-day high of 1.7308 against the euro, from yesterday's closing quotes of 106.16 and 1.7346, respectively. If the aussie extends its uptrend, it is likely to find resistance around 107.00 against the yen and 1.72 against the euro.

Against the U.S. and the Canadian dollars, the aussie advanced to near 2-week highs of 0.6740 and 0.9334 from Monday's closing quotes of 0.6714 and 0.9312, respectively. The aussie may test resistance around 0.68 against the greenback and 0.94 against the loonie.

The NZ dollar rose to more than a 1-year high of 92.23 against the yen and nearly a 4-month high of 1.9994 against the euro, from yesterday's closing quotes of 91.69 and 2.0085, respectively. If the kiwi extends its uptrend, it is likely to find resistance around 93.00 against the yen and 1.98 against the euro.

Against the U.S. and the Australian dollar, the kiwi advanced to more than a 3-week high of 0.5833 and nearly a 3-week high of 1.1545 from Monday's closing quotes of 0.5799 and 1.1579, respectively. The kiwi may test resistance around 0.59 against the greenback and 1.14 against the aussie.

The Canadian dollar rose to nearly a 2-week high of 1.3845 against the U.S. dollar, from yesterday's closing value of 1.3869. The loonie is likely to find resistance around the 1.37 region.

Against the yen, the loonie advanced to a 4-day high of 114.17 from Monday's closing value of 114.02. If the loonie extends its uptrend, it is likely to find resistance around the 115.00 area.

Looking ahead, Germany ZEW economic sentiment index for January and Eurozone construction output for November due to be released at 5:00 am ET.

In the New York session, U.S. ADP weekly employment data is due to be released.

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