Iron-ore prices traded on the Chinese Dalian Commodity Exchange (DCE) staged a solid comeback and rallied nearly 6% to hit an all-time high of 812 yuan ($117.66) a tonne on Wednesday.
The upsurge is backed by the revived optimism over a potential US-China trade deal to be reached when the US President Trump meets his Chinese counterpart Xi ahead of the G20 meeting in Japan next week.
Adding to this, the concerns over tighter supplies also buoyed the sentiment around the ferrous metal after the total iron ore shipment from Australia and Brazil fell 706,000 tonnes last week.
The bounce in the prices is likely to keep the downside restricted in the Australian dollar, as iron-ore is Australia’s top export product.
However, AUD/USD remains trapped in a tight range near 0.6875 region, as the latest trade-related headlines and overtly dovish RBA June meeting’s minutes could outweigh the risk-on rally in the Asian equities and the iron-ore price rebound. Meanwhile, markets await the FOMC monetary policy decision for the next direction on the Aussie.
AUD/USD Technical Levels to Watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Latest Forex News
Editors’ Picks
EUR/USD struggles around 1.21 amid sour market mood
EUR/USD has extended its falls and struggles around 1.21 as the risk-off mood and elevated US bond yields favor the dollar. President Biden's stimulus bill ran into a snag. The Fed's preferred inflation measure and end-of-month flows are eyed.
Gold melts below $1,750, lowest in 8 months amid high Treasury yields
Gold (XAU/USD) has been extending its downfall as elevated bond yields make the precious metal – which provides no returns – less attractive.
S&P 500 Day Ahead Outlook: Inflation fears see bears back bashing
An ugly day for stock markets on Thursday as the dirty word inflation reared its head again. Just when you thought Powell had killed off the thought, it came back stronger in the sequel!
Bitcoin ready for bullish continuation as crypto bull cycle pauses
Bitcoin retest support at $45,000 after failing to break the resistance at $52,000. A break above the range between $48,000 and $49,500 will bring back a bullish impulse.
US Dollar Index remains firm around 90.60 post-data
The US Dollar Index (DXY), which gauges the buck vs. a basket of its main rivals, keeps the bid tone unchanged around 90.60 on Friday.