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Longview Economics says the Aussie dollar's usual links to iron ore and interest-rate differentials have broken down, with the currency trading sideways while iron ore more than doubled. The author expects US rate normalisation to eventually pressure Chinese growth and iron ore prices.
A breakdown in the usual currency drivers makes Australian export pricing harder to predict, and a future drop in iron ore would point to weaker commodity demand from China.
livewiremarkets.comChris WatlingMar 23, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
