Aussie Dollar Vulnerable at Key Support Amid Iron-Ore Meltdown
- Iron ore rout may extend to long-term equilibrium level
- Aussie-dollar could soon break below 0.7385 chart support
CCLA's Bevan Sees More Noise in Metals Market
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Aussie dollar bears may drive the currency further down to break key technical support at the Fibonacci retracement level of 0.7385, or 73.85 U.S. cents, amid a rout in iron ore, Australia’s top commodity export, chart patterns suggest.
The iron ore contract on the Dalian Commodity Exchange has slumped 10% since testing its key 541 yuan a ton resistance this week and was largely responsible for the Aussie dollar’s biggest one day drop since Donald Trump won the U.S. election.