FxWirePro: Daily Commodity Tracker - 21st March, 2022 
The iron ore price in China’s Dalian Commodity exchange declined by more than 6 percent today that brought the net decline from the peak to 14 percent. In February, iron ore price reached a peak of yuan 673 per ton before it started declining; currently, iron ore is trading around yuan 578 per ton. This slide in iron ore price is weighing on Aussie as iron ore is the most important exporting commodity for the country. Iron ore exports contribute about 4 percent to the Australian GDP.
The Australian dollar has been struggling to break the key resistance around 0.78 area and over the past couple of months, it has tested the waters around the resistance numerous times. However, this weakness is unlikely to dent the current bullish momentum in the Aussie and we expect the currency to build on the weakness of the dollar and move towards crucial 0.81 area against the dollar. If the resistance around 0.81 is taken out the currency is likely to move towards 0.85 area. The Aussie is currently trading at 0.766 against the dollar and key support lies around 0.72 area.
The only bearish force that might change the bullish outlook is the renewed slide in the commodity prices due to weakness in the Chinese economy.
