# Iron ore: $A shrugs off commodity rally as US Federal Reserve dominates

> The Australian dollar has been trading largely on Federal Reserve expectations rather than iron ore, despite iron ore prices rising about 30% since August to around US$130 per tonne. Markets expect the Fed to dominate AUD direction until mid-2024.

- Date: 2023-12-12 · published 2023-12-12T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/32977-iron-ore-a-shrugs-off-commodity-rally-as-us-federal-reserve-dominates
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Iron ore is Australia's biggest export earner, so a currency that ignores its price rally signals that US rate expectations are the stronger short-term driver of AUD and related dollar-denominated commodity pricing.

## Read by commodity

- AUDUSD: neutral

## Sources

- afr.com: https://www.afr.com/markets/debt-markets/a-shrugs-of-iron-ore-rally-as-us-fed-dominates-20231212-p5eqvh

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.