Commodity currencies at multi-year low

The commodity currencies are at multi-year lows, having tracked the fall in global commodities. The falling terms of trade and prospects of lower investment going forward leave the risk ahead. 

However, with the major central banks talking about the lower natural rate, postponing tightening or considering more easing, most commodity currencies are still considered "high yield". 

"An improving housing market in China, as a lagged response to stimulus, should prevent commodity currencies from depreciating more than they have in the near term, as have already seen the major base metal prices stabilise as oil prices hover in the range", says Nordea Bank.