Commodity currencies in the G10 space are out-performing. Economists at ING expect the Australian dollar to remain supported by high commodity prices and as the renmimbi now seems to be taking on safe-haven properties.
Terms of trade gains
“Russia's isolation from the world economy is sending commodity prices through the roof. Australia's terms of trade are currently surging given Australia's export mix of fossil fuels plus industrial and precious metals.”
“With the renminbi proving itself as a safe-haven currency – providing an anchor to Asian FX in general – the Australian Dollar is doing well.”
“EUR/AUD is at the lowest levels since 2017 and looks like it can fall another 2-3% near-term.”