-
AUD receiving commodity support
Australian commodity prices continue to rise with further gains in coal and iron ore prices this week, despite news that the Chinese government is moving to contain credit growth and its housing market. The medium-term outlook remains unclear, but taking commodity price moves at face value suggests the AUD should perform relatively well. Rising global bond yields and a stronger USD (mainly reflecting weakness in JPY, GBP, and more recently the EUR) and mixed EM markets may tend to cap the AUD against the USD, but it likely to outperform other currencies. AUD/NZD is approaching technical resistance, but still has ... (full story)
