Dec 10, 2020 10:07 GMTFXStreet News
The commodity story remains super supportive for the aussie but trade tensions with China are deepening and could deteriorate further. Economists at Westpac recommend waiting for dips to 0.7325/50 to buy.
Key quotes
“The commodity story remains super supportive for the aussie, with the 62% iron ore index at seven and a half year highs of $150 for the first time since 2008. Over the last 4 weeks, the Westpac export commodity price index has risen by 14%, our A$ fair value model output has risen by just over 5% and the A$ by just 2.8%. So its clear that the commodity price story points to further upside.”