Of course a weakening USD is good for commodities . When US dollar plunges, USD denominated commodities soar (oil, gold)..... (they become cheaper). This is of course not the sole reason. The reason is pretty much unfathomable.
I've often referred to the paradox that a falling AUD is considered - certainly by HC members - better for local producers (higher POGAUD), but so is a falling USD (above).
So, which is it?
Can't have it both ways. Personally, I find that a plunging USD subsumes whatever the AUD does, as we see in last couple of days. ASX golds are rising today, on the spike in USDPOG - whatever the determinant(s) of that rise may be. A falling USD is certainly part of it.
Whatever the POGUSD does, it will be far easier - now - for POGAUD to break all time highs (it nearly did a few weeks ago), so long as it doesn't approach Parity, or more (as was the case 2011 or so). 80c is OK,, clearly 70c makes it easier to hit AUD 1,800+.....
