FxWirePro: Daily Commodity Tracker - 21st March, 2022 
For AUD/USD, the 5.7% rally this month on the back of higher commodity prices marks a reversal from three successive months of losses.
The widening in the AU/US 2y rate differential to back over 120bp since the September FOMC meeting and the resulting withering of US rate hike speculation gave AUD/USD a shot in the arm, but uncertainty over the economic outlook for China and commodity exports from Australia still cloud the mediumterm outlook.
If the rebound in China money supply translates into better activity data, then the rally in AUD/USD has scope to extend, though it would probably take a return over 0.7500 for investors to change their view (0.7584 is the 200dma), says Societe Generale.
IMM data shows a net reduction in net AUD shorts positions by just over 7,000 contracts over the past month to - 33,705 contracts, the lowest since mid-July when the Shanghai composite completed a 25% correction in four weeks.
