Tue, Sep 27, 2022 @ 05:32 GMT
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Into US session: Australian Dollar strongest on iron ore, shrugs China stocks selloff

Entering into US session, Australian Dollar defy all the negative factor and it’s trading as the strongest one, followed by New Zealand Dollar. Australian job data was just a mixed bag as fall in unemployment rate was mainly due to contraction in labor force as shown indicated in drop in participation rate. Meanwhile, Chinese stocks are suffering another day of steep selloff. Strength in iron ore price is the key factor in driving the Aussie higher. According to Metal Bulletin spot price for benchmark 62% iron ore hit the highest level since March at 73.36.

Canadian Dollar is trading as the worst performing one as oil prices continue deep decline. WTI crude oil is now below 69 at 68.68 and is accelerating downwards. Sterling is the second weakest one on Brexit impasse. Dollar is mixed today but is showing some sign of strength at the time of writing. Let’s see if it can resume the post FOMC minutes rally in US session.

In European markets, at the time of writing:

  • FTSE is down -0.18%
  • DAX is down -0.18%
  • CAC is up 0.19%
  • German 10 year yield is up 0.0033 at 0.467
  • Italy 10 year yield up even more by 0.056 at 3.600
  • German-Italian spread stays above 300 alarming level

Earlier today in Asia:

  • Nikkei dropped -0.80%
  • Singapore Strait Times dropped -0.05%
  • Hong Kong HSI dropped -0.03%
  • China Shanghai SSE dropped -2.94% to 2486.42, taken out 2500 handle as down trend extended

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