Iron ore price, page-10008

Hi Bikemad,

On LinkedIn I wrote a piece on this not too long ago. There was a disconnect between 10 year bond rates and the AUD that opened up for the first time in many years.

The US and AUD bond rates were almost identical yet the AUD was continuing to rise. Back in the early 00s when the bond rates were pretty much the same, you had the AUD trading as low as the 50s.

However commodity prices in particular copper and iron ore were trading much lower. I think now finally the mkt is pricing in the expected interest rate movements north in the US and potentially looser fiscal policy encouraging US companies to repatriate their operations back to the US and also encouraging foreign investment. This is only going to make the US stronger.

Inflation is still anaemic here. commodity prices may give some impetus to the AUD but I think it may be offset by a large degree with the direction of the US economy at the moment.

I suppose the disclaimer is “who the hell knows, lol” but obviously we want it as low as possible as low as iron ore prices don’t follow suit.

Cheers