Back
14 Jan 2015
Copper falls, takes AUD along – TDS
FXStreet (Barcelona) - The TD Securities Team shares that copper fell 7.2% today before gaining some of its losses, leaving other metals weak and sending AUD/USD below the 0.81 handle.
Key Quotes
“The commodity space took another leg down, but it was the copper price that got spanked today, down at one time as much as 7.2% on the LME. Currently copper is off a tad over 5%, so some of the losses have been pared, but this has left the rest of the base metals complex weak, with most down 1-2%.”
“The AUD was sold down aggressively on the move in copper, with stops taken out at US$0.8125. The AUD is down 0.9%, giving up US1c today, to be at US$0.8095. The AUD’s move down though was most aggressive vs the ¥, AUDJPY giving up 1.6%, from ¥96.35 to ¥94.7.”
“Despite these sharp moves, there was no FX driven bond selling. In fixed income, ACGB10s hit fresh lows at 2.57%, down 4bps on the day, while the 3yrs are flat. NZGBs are trailing the moves, yields down 1-2 bps.”
“Most regional equity indices are weaker, the NKY is off –1.4% and the ASX –0.95% led by mining stocks getting hammered. Otherwise Chinese stocks are up 0.3%.“
“Finally Brent crude is down 1%, but above the lows hit overnight near US$45.20, iron ore futures are down 1% while gold is largely unchanged.”
Key Quotes
“The commodity space took another leg down, but it was the copper price that got spanked today, down at one time as much as 7.2% on the LME. Currently copper is off a tad over 5%, so some of the losses have been pared, but this has left the rest of the base metals complex weak, with most down 1-2%.”
“The AUD was sold down aggressively on the move in copper, with stops taken out at US$0.8125. The AUD is down 0.9%, giving up US1c today, to be at US$0.8095. The AUD’s move down though was most aggressive vs the ¥, AUDJPY giving up 1.6%, from ¥96.35 to ¥94.7.”
“Despite these sharp moves, there was no FX driven bond selling. In fixed income, ACGB10s hit fresh lows at 2.57%, down 4bps on the day, while the 3yrs are flat. NZGBs are trailing the moves, yields down 1-2 bps.”
“Most regional equity indices are weaker, the NKY is off –1.4% and the ASX –0.95% led by mining stocks getting hammered. Otherwise Chinese stocks are up 0.3%.“
“Finally Brent crude is down 1%, but above the lows hit overnight near US$45.20, iron ore futures are down 1% while gold is largely unchanged.”