AUD bullish news: Goldman Sachs raises iron ore price forecasts

Goldman Sachs has reportedly raised iron ore price forecasts, citing the output loss at Vale due to the tailings dam disaster.

The investment bank expects iron ore to average $70 per tonne in six months from now, compared to the previous forecast of $60 per tonne. Further, the three-month forecast has been revised higher to $80 per tonne from $70 per tonne.

Iron ore miner Vale has decided to pull as much as 40 million tonnes from out of the market in the wake of Brumadinho dam collapse, according to afr.com.

The upward revision of iron ore price forecasts is good news for the AUD, given the commodity is one of Australia's top exports.