The ‘Magnificent 7’ are not over yet: ETF Shares

InvestorDaily

Barclays has said the Australian dollar is emerging as a standout performer thanks to a potential AI-linked commodity supercycle, similar to the China-led boom a decade ago. The Australian dollar has emerged as the standout performer among major currencies, driven by what Barclays describes as the early stages of an AI-linked commodity boom. In a research note, the investment bank argued that Australia is positioned to be a key beneficiary of surging global demand for industrial metals and critical minerals tied to artificial intelligence (AI) infrastructure.

This would set in motion a similar cycle to the one a decade earlier fuelled by China’s demand for iron ore and steel for construction purposes. According to the report, rising prices for copper, aluminium, rare earths and other minerals essential to data centres and energy infrastructure are benefiting Australia when it comes to terms of trade (ToT). Australia is already one of the world’s largest exporters of many of these materials, making the economy highly sensitive to any sustained rally.

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