The analysis on the charts below demonstrates the strong statistical relationship between iron ore and the Australian dollar. The rolling annual correlation over the entire period 2005 to current runs at around 70%, and through 2008-2010 this was closer to 90%. By contrast, in the year to date correlation is running at just 12%.

Time to turn bearish on the AUD?

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One Response to Chart: The correlation between iron ore price and the Australian dollar

  1. Andrew Kunian says:

    This might explain it

    Australian Debt Draws Safe-Haven Crowd –…/SB10000872396390444042704577589391…Share2 days ago – There is a new safe haven Down Under, and Australian government bonds have rallied sharply this year.

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