Intermarket correlations refer to the relationships between different financial markets and asset classes, such as currencies, commodities, bonds, and equities. Understanding these correlations can significantly enhance a trader's ability to anticipate market movements and make more informed trading decisions. 

One fundamental concept is the correlation between currency pairs and commodities. For instance, the Australian Dollar (AUD) often correlates closely with commodities like gold and iron ore due to Australia's status as a major exporter of these resources. As gold prices rise, the AUD typically strengthens against other currencies, and traders can capitalize on this relationship by trading AUD-related pairs. 

Another important relationship exists between currencies and interest rates. When a country’s central bank raises interest rates, its currency often appreciates because higher rates attract foreign investment. This is particularly true in the forex market, where pairs like USD/JPY can show significant movement in response to U.S. Federal Reserve rate decisions. 

Additionally, correlations exist between stock indices and currency pairs. For example, a strong stock market may lead to a stronger domestic currency as investor confidence grows. Conversely, a declining stock market may weaken the currency as investors pull out their investments. 

By understanding intermarket correlations, traders can improve their predictive capabilities and develop more robust trading strategies.