Iron ore slide provides little relief for the aussie
The AUD is the worst performing major currency on the day
As Eamonn mentioned
earlier, there is indeed a host of reasons for why the aussie should have fallen and you can pick whichever reason you would want – technical rejection, rate differentials, trade wars rhetoric. Or you can even add more to that as iron ore prices have taken a tumble on the day.
earlier, there is indeed a host of reasons for why the aussie should have fallen and you can pick whichever reason you would want – technical rejection, rate differentials, trade wars rhetoric. Or you can even add more to that as iron ore prices have taken a tumble on the day.
On the SGX, April contracts for iron ore is trading more than 3.7% on the day currently. Since March, prices have fallen quite dramatically and that is also weighing on sentiment towards the aussie.
Put together with CFTC data from last week
here, where we saw leveraged funds shifted positions from net longs to net shorts on aussie contracts, it’s not exactly a positive sign for aussie bulls.
here, where we saw leveraged funds shifted positions from net longs to net shorts on aussie contracts, it’s not exactly a positive sign for aussie bulls.
The aussie is holding on still to a support level just under 0.7700 against the dollar, but the key risk indicator for the aussie will be AUD/JPY as highlighted
here earlier.
here earlier.
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