Iron Ore Nearing a Bear Market Spells More Aussie Losses: ChartBloomberg News
As Australia’s biggest export earner, iron ore has significant sway over the nation’s currency, with the pair moving largely in line over the past five years. That means renewed signs of a glut in the steelmaking ingredient are likely to weigh on the Australian dollar, with options on the currency skewing further into bearish territory last week as iron ore capped its first two-week retreat since the start of June. The Aussie is currently hovering below 80 U.S. cents as iron ore at Qingdao port, China, trades at its lowest level since July 28. This is after it slipped below its 50-day moving average -- usually a bearish sign.
— With assistance by Emma O'Brien, and Michael G Wilson