Hi practisingaccountant,Thank you for your reply. I do take some...

Hi practisingaccountant,

Thank you for your reply. I do take some of points on board.

I suppose my point is that 'in time' the currency will fall if Iron ore prices do not rise. What time frame that occurs is impossible to predict. Say just for argument the iron ore spot averages $US95 for the next 12 months. It would seem the most unlikely scenario for the audusd to remain at 93 or be higher.

I should say I have been wrong in my currency forcast for the past 12 months and thought a range 85-89 would have been the case due to US factors. I am quite confident that going forward all the pressure is for a lower currency and lower iron ore adds to that.

Also, why I say the currency should not move with the daily or weekly spot price. I should have said why. It is because most Iron Ore is sold on M or Q contracts. Which is the average of the last month or quarter. So until the lower spot continues for a month or quarter. There really should not be any pressure on the currency. All other things being equal of course on the US side.

As the EURUSD is the most traded and watched cross in the world. A lower EUR should also put a little pressure on the AUD via the cross's in the months ahead.

These comments are not profound on my part of course.