Has the recovery of the Australian dollar ended? After bouncing back up very nicely from the 0.80 abyss, the Aussie is in danger of losing that line once again.
AUD/USD is trading under 0.81 once again, as it is sold off together with the price of copper, iron ore and coal.
This metal, a significant Australian export, was already sliding, but it now began a quicker fall, sliding below $5400 per metric ton. This is a slide of around 8.7% in the recent session.
Also the price of iron ore is not doing too well. This metal received a forecast downgrade from Citigroup. They now expect a price of $58 per metric ton in 2015, down from $65 in the previous analysis.
For coking coal, the bank reduced forecasts by 18%. Oil prices which do not directly affect Australia, have also been falling with both Brent and WTI trading around $45. This hit the C$ hard.
Not only Citigroup downgraded forecasts: also the World Bank downgraded global growth forecasts from 3.4% to 3% in 2015.
An important release awaits Aussie traders: the local jobs numbers. See how to trade the Australian employment change with AUD/USD.
Here is the chart showing the recent tumble in the Aussie:
