Australian Dollar Increase Due to Higher Iron Ore Prices

Must Read

The Australian dollar (AUD) appears to reach unsustainable highs, while copper and oil are both puking up the China rebound.

The US Dollar and Treasury yields fell due to a mixed US jobs report on November 4, but stock indexes rose.

With Hong Kong’s Hang Seng Index (HSI) finishing 8.73% higher and China’s tech-heavy CSI-300 Index jumping 6.38%, Asia-Pacific stocks posted solid gains. Because of higher iron ore prices, the Australian dollar increased for the third week.

“The trade balance is projected to increase from $84.7 billion to $95.9 billion. That would be encouraging for China’s economic prospects after October PMI data revealed a decline in the country’s manufacturing sector,” analysts said.

Against the US dollar, the Chinese Yuan increased by more than 1%. 

The new Yuan loans (a gauge of the growth in bank-issued credit) are predicted to cross the wires at 800 billion Yuan, while the CPI gauge is expected to show a 0.4% month-over-month increase. These incidents can change the mood in the APAC area.

Prices broke above resistance, leading to a Cup and Handle breakout wherein the declining 50-day Simple Moving Average (SMA) is being watched as a potential point of resistance. The pattern’s last decline may be reversed, with a break above the SMA, likely encouraging additional upward.

Meanwhile, stocks managed to hold on as the US curve plunged to its deepest inversion in almost fifty years as the most recent Fed inflation forecast is still stuck at just about 5% annualised.

Despite Elon Musk’s best efforts, the US labour market remains in poor shape. And now the machines have erased the Fed’s most recent 75 bps boost by bidding a significant easing into US rates via equity markets and the DXY.

Just as markets begin to understand that China will get significantly worse before it gets better, the Fed pulls the rug out from under the bear market rally, and the AUD approaches.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img