The increase this year was generally fueled by a shortage of supply in Australia and Brazil amid continuing concerns about shrinking supplies in China, the country that is buying the most raw materials.
However, a jump in stocks, as well as a deterioration in sentiment risk due to the negative development of US-China trade negotiations, have dropped prices in the last few sessions.
Although the Australian is now more free from its strong correlation with iron prices, it has certainly not been doing the currency service lately.
For the past two years, the history of the Australian dollar has been tied to bond yields and as long as the focus of markets remains on central banks and commercial tensions, the recent trend will continue.
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