The correlation between the Australian dollar and iron ore prices comes and goes.
Yesterday I did note the fall in the intraday iron ore price on the Dalian exchange coinciding with a dribble lower for AUD.
Bearing in mind that correlation is not necessarily correlation, this on an attempt by the China exchange to dial back the level of speculative activity on the commodity:
- announced increasing trading fees on the September futures contract
- to 0.025% from 0.01%
- increased trading fees also on other contracts
(The Sept. contract is the current active spot contract)
