# Commodities vs. Aussie Dollar



## pj2105 (6 August 2009)

I'm not sure how to work out, does the rise in the Australian Dollar vs The US Dollar benefit or hinder those in the commodities market?  Specifically, miners like BHP and Rio, if the value of the AUD goes from .55c to .85 to the US dollar, does that mean the profit outlook for them is better or worse?

thanks
George T


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## skyQuake (6 August 2009)

*Re: Commodities vs Aussie Dollar*

Worse, Also BHP reports its earnings in USD.

Also note commodities are priced in USD.

The rise in commodities in usd terms is partially offset by the rise in AUD. (BHP's usd profits are worth slightly less.


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## Dona Ferentes (12 February 2022)




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## qldfrog (12 February 2022)

Overall a7d follow commodities but in case of economic crash, the usd acts..for how long as a refuge value.
Right now i am long USD on the short term, will revert to aud long after the crisis as commodities will recover.my own feeling is that cycles are on a booster soeed so short and medium term might have a different meaning in 2022..potentially weeks instead of months.
Happy to see other views
and we have to add the fiat pending collapse which will affect USD


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## Dona Ferentes (12 February 2022)

the Q is: where do you think commodities are going?  AUD will follow . Eventually. 

Why has it broken, since early 2020? Covid, easy answer; loose money and low (ultra-low) interest rates. And commodities super-cycle.


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## qldfrog (13 February 2022)

Dona Ferentes said:


> the Q is: where do you think commodities are going?  AUD will follow . Eventually.
> 
> Why has it broken, since early 2020? Covid, easy answer; loose money and low (ultra-low) interest rates. And commodities super-cycle.



Yes i agree,i see commodities going higher and so AUD and Canadian dollars rising vs USD .but not after a first heavy fall when USD will still act as refuge..as will Yuan.😊
In my view, for AUD, it is still time to actually buy USD at 71c and switch back to AUD in the high 50c to buy commodities either as index or set of producers to cover the domain..so not just FMG or Rio ,but the whole: oil,coal,gas,iron copper, PM, etc.
That's the plan ...currently accumulating USD.
By living here with real estate assets etc, we are usually heavy AUD anyway ; so my buying of USD ( move to a usd denominated trading account) 
Is just lightening this long AUD position


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