Leaving no stone unturned – why is AUDUSD down?

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Rebar and the Aussie Dollar connection

I just found out that AUDUSD is correlated to rebar futures.

Ok I know futures but not rebar. Next step – check on Internet.

So this is rebar, short for reinforcing bar and is made from steel. It is used to reinforced concrete and is a major material in almost all civil engineering structures. Here is a very interesting product flyer from Singapore’s only steel mill Natsteel.



Is there an Australian connection? Turns out Australian is a minor steel producer. BUT steel comes from iron ore which Australian is a GIANT global supplier.


World’s suppliers of Iron Ore

And then this.


And then this.

It turns out rebar>steel>iron ore>mining>exports is a big contributor to demand and strength of AUD.

Unfortunately I could not do an overlay of AUDUSD to the rebar futures chart directly on Barcharts.com so I had to substitute with FXA which is an ETF. Apparently Barcharts provides data of exchange traded products only. One look at this chart, the loop back to that Christ Weston tweet is complete.


Source: Barchart.com


Why are rebar futures dropping? Continue digging…

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One thought on “Leaving no stone unturned – why is AUDUSD down?”

  1. Wern Farrago says:

    rebar dropping for the same reasons copper would drop….

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