Australian iron ore prices fell nearly 5% to below $100 for the first time since 2009.
RBA Governor Stevens noted that the investment pipeline is still strong for the “a year or two” but with prices nearly halved in the past 18 months the momentum is sure to follow.
AUD will be driven by the whims of risk sentiment over the next month but the underlying trend will be driven by commodity prices. One analyst is worried:
Glyn Lawcock of UBS said he expected further falls. ”Now that it has broken through $US100 a tonne, traders I speak to think the price could get a 7 in front of it,” he said.
