Following the release of its profit report, Top global miner BHP Group’s Chief Executive Officer Andrew Mackenzie said that the US-China trade war is not yet affecting demand for its commodities, as cited by Reuters.
China’s iron ore imports surged 21% in July from the month before to their highest level since January, as supply grew from miners in Australia and Brazil.
Iron ore shipments to China from Australia’s Port Hedland terminal, the world’s biggest iron ore port and used by BHP, had risen more than 11% in June.
“While the trade dispute was putting a dampener on global economic growth, it had not yet affected demand for BHP’s commodities such as iron ore, copper and coal in China.”
"There's obviously been a slight cooling in appetite based on some of the concerns we have seen in the short-term for the global economy. We are not without some consideration as to what might be around the corner."
The Aussie is likely to derive support from the bullish news on the commodities, as Australia is heavily dependent on commodities’ exports for its revenues. At the press time, the AUD/USD pair is seen extending the bounce from 0.6755 lows, as the bulls aim to regain the 0.68 handle.
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