AUD watch out - Goldman sees iron ore falling back to $50

• The AUD is known to follow iron ore prices.
• Goldman's bearish iron ore forecast could be bad news for the Aussie dollar.

Goldman Sachs Group Inc., expects iron ore prices to decline back toward $50 a metric ton. As per the latest projections, prices may fall to $60 a ton in three months, $55 in six and $50 in 12.

The Bloomberg report cites Goldman analyst Hui Shan as saying, " the forecast for lower prices is mainly because we see steel production in China peaking and should fall going forward and iron ore supply is still growing, with S11D ramping up".