Commodity Pairs


DEFINITION of 'Commodity Pairs'

The three forex pairs which include currencies from countries that possess large amounts of commodities. The commodity pairs are: USD/CAD, USD/AUD, USD/NZD. These pairs are highly correlated to changes in commodity prices, therefore traders looking to gain exposure to commodity fluctuations often take advantage of these pairs.

BREAKING DOWN 'Commodity Pairs'

Although there are many countries with large natural resource and commodity reserves, such as Russia, Saudi Arabia and Venezuela, the commodities of many of these nations are usually highly regulated by their domestic governments or thinly traded. The Canadian, Australian and New Zealand dollars are traded at high volumes and are therefore very liquid in the forex market.

  1. Reciprocal Currency

    In the foreign exchange market, a currency pair that involves ...
  2. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  3. Cross Currency

    A pair of currencies traded in forex that does not include the ...
  4. Currency Pair

    The quotation and pricing structure of the currencies traded ...
  5. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  6. Forex - FX

    The market in which currencies are traded. The forex market is ...
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