| The Australian dollar has confounded traders by rising overnight despite a global commodities rout, but analysts say the gains are likely to be limited and predict the currency will face renewed pressure even when the prices of iron ore and other key commodities stabilise. The Aussie shrugged off a further 4.5 per cent drop in the price of iron ore, climbing overnight against the greenback to around US71.40¢ before easing to US71.15¢ in early local trade.
National Australia Bank global co-head of strategy Ray Attrill ascribed the unexpected resilience to a range of factors, including renewed faith the Reserve Bank of Australia will leave the cash rate at 2 per cent despite its concerns about the pace of China's slowdown and sluggish household wage and spending growth at home...............................................Full Article: Source
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