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 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.
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