The Australian dollar steadied against the greenback this week, supported by resilient iron ore demand out of China even as global markets took a more cautious tone on growth.
Benchmark iron ore prices held above $110 a tonne, with steel mills in Shanghai and Tangshan restocking ahead of seasonal demand, providing a floor under the currency despite softer risk appetite elsewhere.
“The AUD is doing its classic commodity-currency thing — ignoring the global mood and taking its cues from the ore price instead,” one Sydney-based FX strategist said.
Traders are now watching the RBA's next statement for any shift in tone, with rate markets still pricing a modest chance of easing before year end.