Morning note from Commonwealth Bank (I picked out the snippet on the AUD)

  • AUD/USD remains heavy but is above its month to date low of 0.7836 reached yesterday.
  • Iron ore futures edged a bit lower yesterday. Iron ore prices have decreased by 815 per ton so far this month while AUD has eased by 1% cents. The resilience of AUD to lower iron ore prices reflects higher Australian interest rates; the yield on the 2 year bond has increased by 11 basis points this month.
  • RBA Deputy Governor Debelle delivers a speech on 'Central bank independence in retrospect" to a Bank of England conference but we do not expect AUD to react (7pm London)