CANBERRA: The Australian Dollar vs New Zealand Dollar recorded modest gains ahead of New Zealand Card Spending and House Prices figures. The Australian Dollar shares have an extremely close relationship with Australia’s largest export, iron ore. Iron ore fell by around 50% in 2014 and inspired notable losses for the ‘Aussie’ exchange rate.
However, last week saw Australia’s largest trading partner, China, fast track infrastructure building projects worth 7 trillion Yuan. Iron ore prices rose on the news as higher Chinese demand was forecast.
Furthermore, iron ore imports by China reached a record high in December as prices weakened. Some of China’s mines close throughout the winter, providing another reason for imports of the raw material to rise.
Australia and New Zealand Banking Group stated: ‘This is a good result and can partly be explained by seasonal restocking demand.’Morgan Stanley has forecast an increase in iron ore to approximately $82 Dollars in the first half of 2015, followed by a slip to $77 in the second half.
