FXStreet reports that ING said that AUD/USD is set to experience a sharper correction lower if the pair fails to surpass the 0.7740/50 area.

“After surging 10% on Monday, Iron Ore is now falling 10% today. Driving this move seems to be the intervention of Chinese policymakers, wary that a surge in commodity prices could undermine the recovery. Here, officials have raised margins and imposed fees on steel trading and made it clear that speculators will be frowned upon.”

“The synchronised recovery in global demand suggests the rally in commodities is an enduring one. But for the short-term, corrective forces are at play – which could take its toll on the AUD – a key exporter of iron ore.”