Top 3 commodity currencies to buy as demand outpaces supply

Commodity prices have remained at elevated levels as the crisis in Ukraine continues. Energy commodities like oil and natural gas have rallied and base metals like copper and aluminum have all rallied. And analysts expect that the commodity supercycle will continue, which will benefit several currencies. Here are some of the top commodity currencies to buy. 

Russian ruble

The Russian ruble has been a bit resilient in the past few weeks. Indeed, the USD/RUB pair has fallen by more than 30% from its all-time high. This performance has been helped by the rising commodity prices like those of oil and natural gas. 

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The capital control measures implemented by the Russian central bank have also played an important role in boosting the ruble price. Most importantly, the Russian government has insisted that it will only sell natural gas to unfriendly countries using the ruble. 

Therefore, there is a likelihood that the currency will continue strengthening as hostility with western countries continue. The GBP/RUB and EUR/RUB pairs have also retreated sharply. 

South African rand

South Africa is one of the leading commodity exporters in the world. Some of its top commodities are gold, platinum, palladium, and coal. Some of these commodities have done relatively well in the past few weeks. For example, gold is hovering near its all-time high.

At the same time, demand for its Platinum Group Metals like palladium is expected to rise as companies seek alternatives to Russian commodities. The South Africa Reserve Bank has also embraced a more hawkish tone in a bid to fight inflation. 

Therefore, there is a likelihood that the USD/ZAR pair will continue falling in the next few months. If this happens, the next key support level to watch will be at about 14.00.

Australian dollar

Australia is also one of the leading commodity countries globally. The country is endowed with top commodities that are in high demand like coal, natural gas, coal, and iron ore. 

Therefore, analysts expect that the country will see a sharp increase in exports as demand for these commodities rise internationally. This is one of the reasons why the Aussie is one of the best-performing currencies in the developed world. 

The AUD/USD pair has risen to the highest level since June 2021 as investors cheer the latest interest rate decision by the Reserve Bank of Australia (RBA). The bank signaled that it will start hiking interest rates in June.

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