Iron-ore prices traded on the Chinese Dalian Commodity Exchange (DCE) extended its winning streak into a sixth straight day on Thursday, having surged nearly 4% to CNY 664 ($93.62) per tonne on Chinese stimulus hopes.
China’s cabinet, the State Council, said on Wednesday that China will cut bank reserve requirements in a “timely manner” to spur economic growth.
The rise in the ferrous metal’s prices is likely to add to renewed upside attempts seen in the AUD/USD pair that currently trades near 0.6820 region, helped by fresh optimism on the US-China trade talks.
It’s worth noting that iron-ore, one of Australia’s top exports, slipped into a bear market last week.
AUD/USD Technical levels to watch