Aussie testing major support as metals tank

Market movers

Aussie dollar

The Australian dollar hit a four-month low, amid a drop in the trade surplus, sliding commodity prices and after the Federal Reserve remained upbeat on economic growth, setting a fire under the US dollar. The Aussie skidded to US74.07¢ in late trade, having dropped around a US cent and a half overnight. “A break of the US74.00¢ level will send the Aussie longs running for the exit,” said OANDA senior trader Stephen Innes. Much of the Aussie weakness came after the Fed made positive comments on the US economy, reinforcing expectations of a rate hike in June.

Iron ore

Iron ore futures in China feel hard as investor concern deepened about the outlook for demand in the world’s largest user, fresh signs of burgeoning supply and a broad-based sell-off in base metals. On the Dalian Commodity Exchange, ore for September delivery fell as much as 7.3 percent to 485 yuan a tonne, the maximum daily drop allowed. And monthly data showed shipments from Port Hedland, the world’s biggest bulk-export terminal, rose to the highest this year. Year- to-date exports are 6.6 percent more than in 2016.

AFR

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Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes