AUD: Irons in the fire - Nomura

According to Peter Dragicevich, Research Analyst at Nomura, the strong rally in Australian-centric commodity prices, such as iron ore, continues to be AUD supportive.

Key Quotes

“The tide should eventually turn, but some underlying developments point to prices remaining elevated for a while longer. Higher price levels are boosting Australia’s terms of trade and generating a shift in the trade and current account balances. These changes are fundamentally AUD positive. When combined with the improved global growth outlook, Asian export momentum and geopolitical risks in the eurozone the bias is for further near-term EUR/AUD downside.”