Published at 00:37 (GMT) 03 Jul
Herald Sun: The price of iron ore has slumped in offshore trade, moving to a more than 2-month low as traders eyed record exports from Australia's largest ore terminal.
Benchmark iron ore at $55.80 a tonne, down 5.3% from its prior close of $58.90 a tonne. Lowest mark since April 23.
The commodity is enduring one of its worst runs through a bear market that has seen it lose 60% of its value in the past 18 months. Driving the losses was news of record exports from Port Hedland in June, which is used by both Fortescue Metals and BHP Billiton.
Recap: Australia trade deficit for April revised to record AUD4.136bln from AUD3.888bln.
Separately, Australia June AIG services PMI index +1.6pts to 51.2, up from 49.60.
On FX, AUD, AUD/Crosses weighed by the sharp losses in Iron Ore prices. As it fell to $55.80, from $58.90, to lowest since April 23 $53.80. Eye break of $50 - with focus on all time lows of $46.70 - lowest since April 2. Concerns over Australia trade picture - with the record AUD4.136bln trade deficit in April. And now with falling Iron Ore prices, concerns over China - given the stock markets selloff to bear markets. To see more downside and to pressure RBA to cut Cash Rate more.
AUD/USD at 0.7633-35, offers at 0.7650/0.7700, interest to sell on rallies, given lower Iron Ore. Bids at 0.7550-60, stops below. Focus on break of 0.7500.
AUD/Crosses weighed as AUD/NZD down from 1-year 8-month highs of 1.1420-30, to 1.1355-60, weighed by Iron Ore fall.
AUD/SGD at 1.0295-00, it hit 3-month lows of 1.0250-55, lowest since April 2 1.0240. Lowest level in 6-years since March 19 2009 1.0198. AUD/SGD eye break of 1.0240, for 1.0200 - and then Parity. Given RBA rate cut views and MAS pause. AUD/SGD last below Parityh on March 13 2009 0.9954.
USD/SGD at 1.3485-90, weighed by AUD/SGD, NZD/SGD sales and SGD/MYR, SGD/IDR demand. Offers 1.3530-50, bids at 1.3450-60.
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