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The most-traded iron ore futures on China’s Dalian Commodity Exchange rose 3.3 percent on Wednesday to  727.5 yuan ($105.34) a tonne, the highest since contracts were launched in 2013, according to Reuters.  

The record high on iron ore futures is an AUD-positive development  as the commodity makes up the bulk of Australian exports. However, with markets penciling in two RBA rate cuts by November and deepening trade tensions, the AUD/USD may have a hard time cheering the iron ore rally. The AUD/USD pair is currently trading largely unchanged on the day at 0.6882.