Goldman Asset Says Sub-$40 Iron Ore Won’t Doom Aussie ResilienceBy
Currency may climb to 75 U.S. cents, GSAM’s Moffitt says
Aussie is defying gravity and should be be lower, ANZ says
It’s a question that’s confounded many in currency markets: Why hasn’t this quarter’s 31 percent slide in Australia’s chief export iron ore unwound all of the Aussie dollar’s rally?
For Goldman Sachs Asset Management, which has been positioned for gains in the Australian dollar since September, the answer is that almost everyone that wanted to sell the currency based on its link to the commodity has already sold. Another climb of 3.9 percent versus the greenback is possible, according to Philip Moffitt, the fund manager’s Asia-Pacific head of fixed income. The Aussie stands to benefit as concern may ebb over a slowdown in China and investors with bullish bets on the U.S. dollar close those positions once the Federal Reserve raises interest rates, he said Monday…
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