The Australian dollar remains well supported today on the back of rising commodity prices which many attribute to the booming construction industry in China

Iron ore, Australia’s biggest export has now risen 47 percent in just 2 months as Chinese demand outstrips supply and according to many analysts, the trend is set to continue for the foreseeable future,

“Iron ore prices are rising on demand hopes as higher steel prices encourage Chinese steel mills to boost production,” said Vivek Dhar, mining and energy commodities analyst at the Commonwealth Bank.

 “We expect Chinese steel demand to be well supported over the next few months as policymakers shore up economic growth ahead of a leadership transition in the final quarter of the year.” He added.

More and more of the big names are now admitting they got it wrong about the Australian dollar with some predicting that the currency would be languishing around the US70c mark by the end of the year.

As things stand now its more than likely the the Aussie dollar will be at US80c before too long

"Having held our nerve through the first seven months of 2017 with our long-standing call for the AUD/USD to fall to 70 cents by the end of this year, the ever-diminishing prospects for a significant near-term recovery in the US dollar now forces us to acknowledge that it is now difficult to expect such a steep fall this year," noted analysts from National Australia Bank's FX strategy team .

"The long and the short of our forecast revisions is the limited prospects for an early reversal of the now 9.5% fall in the US dollar since the start of the year," they added.