Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Forex - AUD/USD lower as falling iron ore prices seen

Forex Jul 30, 2013 09:43PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
AUD/USD
-1.47%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/JPY
-1.28%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/NZD
+0.83%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Investing.com - The Australian dollar resumed its downtrend against its U.S. counterpart during Wednesday’s Asian session amid market chatter about falling iron ore prices.

In Asian trading Wednesday, AUD/USD fell 0.33% to 0.9033. The pair was likely to find support at 0.8999, the low of July 12 and a three-year low and resistance at 0.9287, Monday's high.

Chinese import iron ore currently trades around USD131 per ton in the spot market, but Goldman Sachs sees that price falling to USD108 per ton next year as seaborne iron ore moves to oversupply. Analysts believe spot iron ore could average USD126 per ton this year, a four-year low.

Goldman said major Australian miners such as BHP Billiton and Rio Tinto could remain profitable even with lower margins. However, small miners could be crushed by declining margins.

Australia’s multi-year mining boom, widely expected to end this year, has been driven in large part by iron ore demand from China, Australia’s largest export. That demand helped make the Aussie one of the best-performing currencies against the greenback over the past several years.

However, times change, and the Aussie is this year’s second-worst performing developed market currency behind the Japanese yen.

On Tuesday, official data showed that building approvals in Australia dropped 6.9% in June, confounding expectations for a 2.3% rise, after a 4.3% decline the previous month.

The Aussie also came under pressure after RBA Governor Stevens said second-quarter inflation data suggests that there is still room to lower interest rates if necessary and that he wouldn't be surprised if the currency dropped further.

Elsewhere, AUD/JPY fell 0.30% to 88.63 while AUD/NZD dropped 0.22% to 1.1326.


Forex - AUD/USD lower as falling iron ore prices seen
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email