The Australian dollar is suffering back to back losses today after a sharp pullback in world commodity prices over the last 2 days.
At 1.05pm (GMT) the Aussie dollar was trading at US75.09c, down 0.29% from yesterday’s trade.
In the last 48 hours, Oil, Gold and Iron ore have all taken a tumble as global unrest intensifies after the terror attacks in Brussels.
The Australian dollar has enjoyed a strong rally since the start of the year on the back of strong commodity prices such as iron ore, driven by a demand from China as the construction session kicked off which is usual for this time of year.
But with the recent pullback many like analysts at Goldman Sachs think the party may be coming to an end.
“Barring a material increase in Chinese steel demand in the coming weeks, we believe steel production will decline in 2016 and seaborne demand has essentially peaked. The stream of announced production cuts is bound to resume, in line with long dated iron ore prices that have remained in the low to mid $30s for 2017 and beyond.” Goldman noted.
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