Iron ore futures are taking a nosedive back to $100
The rally this year has been largely fueled by supply shortages in Australia and Brazil amid ongoing concerns about shrinking stockpiles in China, the country which purchases the most of the commodity.
However, a rebound in port inventory in China (one that Giles highlighted two weeks ago here) as well as souring risk sentiment due to negative developments in the US-China trade rhetoric, has seen prices tumble sharply over the past few sessions.
Although the aussie has largely detached from a strong correlation to iron ore prices, this at least don't add to any positive reason for the currency as of late.
Over the past two years, the story of the Australian dollar has been one of bond yields and as long as the market focus remains on central bank and trade tensions, the story will continue for quite some time yet:
