Goldman Sachs see lower iron ore prices ahead, will be a negative for AUD

Goldman Sachs with a longer outlook on the AUD (12 months),m this via eFX 

bank trade ideas, 
out eFX Plus

  • “In addition to potentially lower front-end pricing, weaker iron ore prices may weigh on AUD/USD. Despite their recent surge, our commodity strategists expect that iron prices will fall over the next 12”
  • “Despite generally rising commodity prices, Australia-specific factors may continue to hold back AUD/USD vs other USD crosses. Most importantly, the OIS curve substantially over-prices our expectations for policy rates, and our rates strategists now see a sufficiently compelling case to own the Aussie front end” 

Just to repeat, GS see iron ore lower over 12 months. Chinese markets have reopened today after a break on Monday, Tuesday and Wednesday and commodities are doing a catch-up surge. 

Articles You May Like

Oil prices extend losses on demand worries
More cities in China sent into COVID lockdown as cases mount
EASY Forex Trading Strategy : How To Catch 100 pips A day?
6 Questions for Tongtong Bee of Panony
No! We don’t want to reenter into the dreaded “Red Box”

Leave a Reply

Your email address will not be published.