Brown Brothers Harriman (BBH) has reported that the USD has weakened, especially against commodity-linked currencies. A rise in AI capital expenditures is expected to boost demand for commodities, particularly precious and industrial metals.
Major companies like Amazon, Google, Microsoft, and Meta plan to invest about $660 billion in 2026 for new data centers and equipment. This investment represents 2.1% of US GDP, showing a 60% increase from 2025 and a 165% increase from 2024.
AI Drives Demand for Commodities
The growing investment in AI is likely to support commodities such as silver, gold, platinum, palladium, and copper. These materials are crucial for making advanced chips, wiring, and energy systems needed for new servers and power setups.
Commodity-linked currencies like the AUD, CLP, ZAR, BRL, MXN, and PEN are expected to do well. This was noted by the FXStreet Insights Team, which includes journalists and market analysts.
The anticipated boost in AI-related spending is already becoming evident in early 2026 corporate reports, which support the commodity sector. For example, Microsoft’s recent earnings call confirmed its ambitious plans for data center expansion, aligning with the expected demand for industrial metals. This fundamental support could pressure the US dollar against certain currencies in the weeks ahead.
This trend is visible in the futures market, where copper prices on the COMEX have risen over 6% this year and recently surpassed the significant $4.40 per pound resistance level. Derivative traders might consider taking long positions in copper and silver futures to capitalize on this trend. Utilizing bull call spreads on these commodities could also be a smart strategy to gain potential upside while managing risk.
Strength of Commodity-Linked Currencies
This trend is affecting commodity-linked currencies, with the Australian dollar now trading above 0.6900 against the US dollar for the first time since mid-2025. Buying AUD/USD call options or selling USD/MXN put credit spreads are good ways to take a bullish stance on these currencies. These strategies benefit from both rising commodity prices and a weaker US dollar.
Looking back at late 2025, we noticed early signs of this shift as industrial metals started to rise steadily. This price movement indicated that the market was adjusting to the significant spending forecasts for 2026. The rally we’ve observed since January is simply a continuation of this established trend.
We can also expect the Brazilian real and the South African rand to perform well, as demand for their main exports increases. The surge in precious metals like gold and silver is noteworthy, fueled not just by investment demand but also by their essential roles in high-performance servers and electronics. This creates several related trading opportunities tied to the ongoing boom in AI infrastructure.
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