AUD drop is also reflecting lower iron ore price. Chalmers will need to find more tax revenues because Australia's terms of trade luck is about to run out.
Spot iron ore fell 6.3 per cent to $US108.10 a tonne on Friday night in Asian trade, just days after China’s National Development and Reform Commission (NDRC) said it would crack down on “unreasonable” price gains in the market and look to expand the use of domestic ore and improve the use of scrap steel.
Such comments from China are hardly new, of course. It seems that every few months the NDRC, which has been charged by Beijing with the task of reducing China’s exposure to iron ore prices, grumbles about paying too much, and then largely leaves the market to continue on its merry way.
Nevertheless, Friday’s action means iron ore has fallen almost 19 per cent since March 15, when the price set at $US132.73 a tonne. The consensus view that prices are heading back towards $US100 a tonne in the second half of calendar 2023 is starting to look on the mark.
