Comments from CBA in a client note:
- Aussie dollars rally yesterday to its highest since July 2015 on the back of record daily gains in iron ore may prove unsustainable
- Spike in iron ore prices is driven by sentiment
- Fundamental market remains at risk of surplus as China's secondary sector, driven by declining property construction volumes, continues to slow
- Trend in AUD is in line with Australiaâs terms of trade
- AUD will struggle to lift significantly higher mainly because of external economic developments
