(Action Economics) - 06:15 EST FX Action: AUD-USD is trading heavily today, partly amid a perky amid in the U.S. dollar and partly amid a AUD-JPY sell-off from during the London AM session as the Tokyo-session bout of heavy yen selling reversed track. We expect the AUD to continue trending lower. Weak commodity prices have hit the AUD and other dollar bloc currencies over the last couple of weeks. The Bloomberg Commodity Index recently saw eight-month lows. A GS research piece said that the dive in iron or prices this year marks the end of the so-called "iron age," consistent with their long-held view that the commodity "super cycle" is shifting. Iron ore prices saw five-year lows last week and are down nearly 40% on the year, which is a particularly negative for the AUD, as the metal accounts for about a third of Australia's terms of trade (Gold only accounts for about 5% these days). The RBA has been arguing that the Aussie is overvalued relative to commodity prices. We look for AUD-USD to approach January lows near 0.8900. GS is targeting 0.8500.