The Australian dollar has remained resilient during the national Anzac holiday today, fending off weakness in commodity prices.
At 8.16pm (GMT) the Aussie dollar was trading at US 77.09c virtually unchanged from yesterday’s trade.
The price of Iron ore, Australia’s biggest commodity tumbled 6 percent overnight leading some to believe the recent rally is coming to an end.
Even before today’s fall many attributed the stellar rise to temporary demand from China to kick start the building season but things may be beginning to wear off as time rolls on.
“We remain of the view that overall steel demand in China will remain weak this year, which should ultimately weigh on iron ore prices,” said ANZ’s senior commodity strategist Daniel Hynes.
There has been a lot of speculation in the metal price which has also driven it higher but an announcement by the Chinese government that they plan to crack down on traders is also expected to weigh heavily on the Iron ore price,
“The Chinese speculative community seems to have decided the big credit figures that came out two weeks ago was a green light to get levered up,” Michael Coleman, co-founder of RCMA Asset Management in Singapore,
“They don’t want to buy the stock market because all of the curbs that are in place and seem to have taken the view that commodities are really cheap.” He added
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