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
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