Dalian iron ore jumps 6% to record highs on fresh trade optimism, will it help the Aussie?

Dhwani Mehta FXStreet

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

AUD/USD

Overview
Today last price	0.6876
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	0.6875

Trends
Daily SMA20	0.693
Daily SMA50	0.6994
Daily SMA100	0.7055
Daily SMA200	0.7113

Levels
Previous Daily High	0.6882
Previous Daily Low	0.6831
Previous Weekly High	0.7009
Previous Weekly Low	0.6861
Previous Monthly High	0.7062
Previous Monthly Low	0.6862
Daily Fibonacci 38.2%	0.6863
Daily Fibonacci 61.8%	0.6851
Daily Pivot Point S1	0.6843
Daily Pivot Point S2	0.6812
Daily Pivot Point S3	0.6792
Daily Pivot Point R1	0.6894
Daily Pivot Point R2	0.6914
Daily Pivot Point R3	0.6946

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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