The $A has slipped ~5% from its February high in very similar manner to the likes of BHP Group (BHP). Short-term our preferred scenario is we now see another test and break of the 80c level, a good read through for local stocks if our heavyweight miners can regain their mojo i.e. even while the ASX200 posted fresh 12-months last week Australia’s most influential 3 resource companies reman well below their 2020 highs i.e. BHP Group (BHP) -9.3%, RIO Tinto (RIO) -14.1% and Fortescue Group (FMG) -28.5%. The pullback in these heavyweight miners with major iron ore exposure illustrates there are a number of moving parts to stock market investing with the underlying commodity price just one i.e. iron ore is less than 4% below its 2021 high.
MM remains bullish the $A.
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