AUD/USD Steady as Iron Ore Prices Plummet to 13-Month Low

The AUD/USD exchange rate remained steady on Tuesday morning as investors reacted to falling iron ore prices, which dropped to their lowest level in 13 months. The price of iron ore futures hit $92.85, down from its recent levels due to weaker Chinese demand and narrowing margins at steel mills.

The decline in iron ore prices is significant for Australia, which exports a large volume of the commodity every year. In fact, last year's exports were worth around $138 billion. The country's economy will likely be affected by this development, especially considering the ongoing weakness in the energy market, with oil prices lower than their levels from last month.

The Australian dollar is also waiting for key economic indicators, including the upcoming Reserve Bank of Australia (RBA) meeting next week and the US nonfarm payrolls (NFP) data. Economists are divided on what to expect from the RBA, with some analysts predicting a rate hike due to high inflation rates.

The daily chart shows that the AUD/USD pair has formed an ascending channel after rebounding in recent weeks. However, there is also a bearish flag pattern forming, which could lead to a strong bearish breakout and potentially push the price down to $0.6922.