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Commodities: bad news for AUD and CAD - Rabobank

FXStreet (Guatemala) - The prices of many commodities have been tumbling.

Key Quotes:

“In many markets this is the consequence of both good levels of supply and falling demand”.

“Slumping Chinese demand has been associated with the sharp drop of prices of both iron ore and diary which are the mainstay of Australian and New Zealand export markets respectively”.

“It is not just China, however, that is being associated with weak demand”.

“Earlier this month the OECD revised down its forecast for all major world economies with the exception of India”.

“Russia and the Eurozone in particular have been subjected to widespread downside revisions of growth expectations”.

“For the ‘commodity’ currencies this clearly spells bad news, though we would argue that the AUD and the NZD are more vulnerable currently than the CAD”.

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