Commodity currencies slip as OPEC+ output cuts fail to ease demand concerns

Commodity currencies fell against their safe-haven counterparts on Monday after a record output cut settled upon by OPEC+ did not ease investor concerns over a declining global demand.

The Australian Dollar and the New Zealand Dollar, widely observed as a benchmark for market risk fell against the Greenback. This signaled concern over demand for commodities.

The Australian Dollar slipped by 0.17% to 0.6338 per dollar, retreating from a four-week high. The New Zealand Dollar fell by 0.21% to 0.6072 per Dollar.

The U.S. currency gained 0.63% to 10.25 against the Norwegian Crown and 0.51% to 23.45 against the Mexican Peso.

The Canadian Dollar stood at C$ 1.3956 against its U.S. counterpart. Meanwhile, the Swiss Franc steadied at 0.9661 per Dollar.

The output cut, agreed upon on Sunday by OPEC and its allies, was in a bid to bolster oil prices as the pandemic curbed global demand.

Currencies from major oil producers such as Norway, Mexico, and Canada bolstered last week when the output cut agreement was in its first stages. However, its gains were erased on the following Monday after market fears drove investors away from risk assets.