Australian Dollar Forecast: Iron Ore Prices Counterbalancing Dovish RBA 2021-02-13 00:00:00 Daniel Moss, Analyst Australian Dollar Fundamental Forecast: Mixed Surging iron ore prices have counterbalanced the RBA’s decision to extend its bond purchasing program. Better-than-expected employment and retail sales figures may open the door for AUD to continue gaining ground. Resilient Iron Ore Prices to Underpin AUD The recent surge in iron ore prices has buoyed the commodity-sensitive Australian Dollar over the last two weeks, despite the Reserve Bank of Australia extending its bond-buying program to keep a lid on the local currency at its February 2 meeting. The RBA “decided to purchase an additional $100 billion of bonds issued by the Australia Government and states and territories when the current bond purchase program is completed in mid-April”, adding that “these additional purchases will be at the current rate of $5 billion a week".