Resources Rally, Dollar Drops Dollar Drop Over the last few days both the Australian dollar and NZ dollar have made significant gains against the US dollar, up to US$0.72 and US$0.67 as the US dollar has fallen across the board. Renewed concerns around global growth this year, a patch of recent soft US economic data, and cautious comments by a US Federal Reserve policymaker on Wednesday have seen the market move to pricing the chance of a US rate hike this year at 50%. The prospect of higher interest rates in the US has been a driving factor of USD strength in recent times (as a higher interest rate on USD cash encourages investment into USD) and given recent developments we have seen the USD drop sharply over the last few days. We believe the market moves are premature, and while the US Fed is unlikely to raise interest rates in March, we still expect it to follow a gradual path of higher rates over the course of 2016. In terms of economic data important monthly US employment data (nonfarm payrolls) will be relea...