Iron Ore Rallies, Australian Dollar US Dollar Exchange Rate Climbs
The Australian Dollar to US Dollar (AUD USD) exchange rate continued appreciating on Wednesday following the latest rise in commodity prices.
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Australian Dollar (AUD) Bolstered Surge in Iron Ore
The Australian Dollar saw further growth yesterday as speculative forces caused Chinese commodity futures to accelerate once again.
Further gains for raw material futures caused iron ore to explode as prices for Australia’s largest export sailed past $80 a tonne for the first time in 2017.
The rise in iron ore also appears to have been supported by the rise in steel prices following the announcement of further production cuts in China over environmental concerns.
Trump Conference Lifts US Dollar (USD)
The US Dollar rallied early on Thursday however as traders awaited Donald Trump’s first press conference since becoming president-elect back in November.
Investors are hoping to hear more about the incoming president’s economic plans as markets have so far had to work with vague promises of infrastructure spending and job creations, without any clear idea on how Trump plans to implement them.
Observers will also be listening for any indication of how US foreign policy will look under a Trump presidency, with his recent cosying up to Russia and angering of China in communicating with Taiwan being seen as a major deviation from standard US policies.
AUD USD Forecast: US Retail Sales May Drive Demand for ‘Greenback’
The AUD USD exchange rate may slide towards the end of the week’s trading as the US releases its latest Retail Sales report, with figures expected to show that US retailers saw notable growth in December as analyst predict sales will rise from 0.1% to 0.7%.
Meanwhile the Australian Dollar could be strengthened on Friday following the release of China’s Trade Balance report for December as China’s trade surplus is expected to grow from $44.61bn to $46.5bn, which could indicate healthy growth in Australian exports thanks to China being its largest trading partner.
Current Interbank Exchange Rates
At the time of writing the AUD USD exchange rate was trending around 0.73 and the USD AUD exchange rate was trending around 1.35