AUD should continue to depreciate - Nomura

FXStreet (Bali) - The negative implications for Australia's GDP growth from falling iron ore prices should continue to depreciate the Aussie going forward, notes Charles St-Arnaud, Economist at Nomura.

Key Quotes

"Iron ore prices have fallen significantly over the past year, driven by increased global supply and falling demand. Until recently, export volume growth in Australia had continued to increase, providing support to the economy."

"However, now there are signs of slowing of export growth, as supply and demand fall. The negative implications for GDP growth, combined with lower terms of trade suggest AUD should continue to depreciate."