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Commodities Boom Sends Aussie, Stocks Correlation to Decade-High

  • Surging materials prices have supported both assets this year
  • Resources are ‘common theme’ in high correlation: ThinkMarkets

The relationship between Australia’s equities and currency has become the closest in a decade as commodity prices surge.

The 180-day correlation between the country’s stock benchmark and the Australian dollar has climbed to the highest level since late 2011, according to data compiled by Bloomberg. The strengthened ties come as rallies in materials from oil to iron ore have boosted both the nation’s equities and the Aussie.