Amid the hoopla of volatile energy prices due to the ongoing Russian invasion of Ukraine, recent commodity price movements in what underlines the Australian economy have given rise to more bullish forecasts for 2023.
The most recent RBA Index of Commodity prices notes a retracement for November, but still extremely elevated, giving our terms of trade a big push higher:
But last month it was iron ore in the main that has seen its fortunes rise as LNG, crude oil and coal prices moderated. According to Westpac, November iron ore prices have lifted from just over $80 to $USD110 in early December, but they rightly note its not all rosy ahead:
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