Forex Flash: AUD/USD heading to test the 200dma support at 1.0312 - Westpac

FXstreet.com (Barcelona) - Iron ore prices tumbled another -4.75% to $90.30/tonne on Wednesday, lowest since Nov 2009. According to Westpac currency strategist Sean Callow, "this alarming price action is undermining confidence in AUD, given iron ore accounted for 20.5% of Australia's exports in 2011, well ahead of the second largest export, coal, on 14.9%." Assuming Bernanke doesn't pre-announce QE3 on Friday, Sean expects "AUDUSD more fairly valued around 1.00-1.01." On the day, Mr. Callow sees high odds the pair is heading to test the 200dma support at 1.0312.