The weekly chart of the Nymex Iron Ore futures shows a bullish inverse head and shoulder breakout. This is a clear reversal pattern…especially since the inverse head and shoulder has appeared at the bottom of the 5-year long downtrend.
The bullish break is good news for the Australian dollar (AUD) given the close correlation between the two. Increased odds of Fed rate hike could keep the AUD/USD under pressure, nevertheless the Aussie could do better against other majors.