From Morgan Stanley this morning comes a great chart of exactly where each of Australia’s major commodity exports is in its price cycle.
Only nickel and iron ore yet to achieve a price base. The implication is that over the coming years, when these two bottom out, Australian receipts for exports will start to rise, taking the health of the miners with them.
The extra good news is that as the Aussie dollar’s fall is also expected to lag the increase in commodity prices, which are denominated in US dollars. As a result total receipts received in Australia, when converted back into Aussie dollars, will also be rising.
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