# Dovish Fed Spurs Commodity Prices and Currencies Higher - ActionForex

> Commodity-linked currencies, including the Canadian, Australian and New Zealand dollars, rose to two-year highs after the Fed struck a dovish tone on inflation. The Bank of Canada had raised rates in July, and commodity prices had already risen over the past month on demand from China.

- Date: 2017-07-27 · published 2017-07-27T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/69898-dovish-fed-spurs-commodity-prices-and-currencies-higher-actionforex
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker dollar and firmer commodity currencies raise the cost of US dollar-priced imports for Canadian and Australian buyers, while supporting dollar-denominated commodity prices.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲
- USDCAD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-07-27 | [Dollar Selloff Resumed after FOMC, Commodity Currencies the Best Performers - ActionForex](https://feedsoft.ai/events/69895-dollar-selloff-resumed-after-fomc-commodity-currencies-the-best-performers.md) | -0.6% | -0.5% |
| DXY | 2017-08-24 | [The Assay - Why the FED’S actions are bullish for commodity prices](https://feedsoft.ai/events/69364-the-assay-why-the-fed-s-actions-are-bullish-for-commodity-prices.md) | -0.4% | -0.8% |
| DXY | 2021-05-11 | [Commodity currencies hold advantage as dollar waits for inflation and Fed \| Reuters](https://feedsoft.ai/events/47003-commodity-currencies-hold-advantage-as-dollar-waits-for-inflation-and-fed.md) | +0.3% | -0.1% |
| DXY | 2020-05-18 | [Dollar struggles as rising oil prices lift commodity currencies](https://feedsoft.ai/events/53034-dollar-struggles-as-rising-oil-prices-lift-commodity-currencies.md) | -1.0% | -2.9% |
| DXY | 2021-08-30 | [US Dollar Weakens as Dovish Fed Lifts Stocks, Bonds, Commodities and Other Currencies. Where To From Here? \| Forex trading, free forex education \| Forex.ca](https://feedsoft.ai/events/45482-us-dollar-weakens-as-dovish-fed-lifts-stocks-bonds-commodities-and-other.md) | -0.7% | +0.4% |

## Sources

- actionforex.com: https://www.actionforex.com/contributors/fundamental-analysis/30017-dovish-fed-spurs-commodity-prices-and-currencies-higher/

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