# Commodity prices spike leaves Australian dollar undervalued

> Commonwealth Bank economist Joe Capurso said the Australian dollar is undervalued relative to commodity prices that have spiked since the Ukraine conflict began. CBA expects the Reserve Bank of Australia to start raising rates in June. The bank sees the Aussie strengthening through 2022 on higher energy and metal prices.

- Date: 2022-03-15 · published 2022-03-15T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/42517-commodity-prices-spike-leaves-australian-dollar-undervalued
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Expected currency strength makes Australian exports more expensive abroad, but the view is based on higher commodity prices that support feed input costs. The effect on feed markets is limited.

## Read by commodity

- AUDUSD: bullish ▲

## Sources

- commbank.com.au: https://www.commbank.com.au/articles/newsroom/2022/03/Aussie-dollar-undervalued-economists.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.