EBC Markets Briefing | Australian dollar hits six-month high due to iron ore rally

The Australian dollar hit a 6-month high on Friday on the US slowdown and iron ore price rise, driven by China steel demand bets.

The Australian dollar hit a six-month peak on Friday on US economic slowdown and rising iron ore prices. The commodity touched its highest in nearly a month as traders bet on rising demand in China’s steel market.

Futures in Singapore rose the previous four trading days on Thursday and was up more than 6% in the week amid hopes for a stimulus boost at a major Chinese political gathering.

The steelmaking ingredient is now solidly above $110 a ton after trading below that threshold for most of June. However, China’s real estate prospects are still murky despite a few signs of a recovery.

Global economic growth this year is expected to be slower than the average in the half decade before the pandemic. Yet the World Bank believes commodity prices will remain close to 40% above 2015-2019 levels.

The RBA pondered whether a further rise in interest rates was needed to bring inflation to heel at its June policy meeting, but decided to stand pat in part due to the risk of a sharp slowdown in the labour market.

Broad-based weakness in the ISM services index coupled with an upward trend in jobless claims suggests an exhaustion in the world’s largest economy ahead of the presidential election.

The Australian dollar breached the resistance around 0.6700, exposing 0.6800 it hit in December. The bullish bias remains as 50 SMA is well respected.

EBC Financial Market Forecast Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Economic Research Findings or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Regulation: FCA (UK), ASIC (Australia), CIMA (Cayman Islands)
read more
USDJPY, GBPUSD, BTCUSD

USDJPY, GBPUSD, BTCUSD

US CPI may offer clues on Fed's next move; USDJPY points up; UK CPI expected to remain steady; GBPUSD tilts down; Bitcoin flies above 123,000; next target at 125,000
XM Group | 1h 48min ago
Gold: Is the latest bounce sustainable?

Gold: Is the latest bounce sustainable?

Gold crosses above 3,355 resistance as tariffs threats return. Short-term bias is positive but key obstacles still lie ahead. Support at 3,300–3,325 critical for downside risk.
XM Group | 5h 14min ago
Trump announces tariffs on Mexico and EU

Trump announces tariffs on Mexico and EU

Dollar gains as Trump continues his tariff threats - Traders could pay extra attention to tomorrow’s US CPI data - Wall Street indices slide, gold rises amid risk-off mood - Bitcoin hits a fresh record high as ‘Crypto Week’ begins
XM Group | 5h 44min ago
USD/JPY Extends Gains as Market Monitors US Tariff Policy

USD/JPY Extends Gains as Market Monitors US Tariff Policy

The USD/JPY pair climbed to 147.42 on Monday. Early in the session, the yen staged a partial recovery from last week’s losses amid heightened global trade risks, but the rebound proved short-lived as the currency resumed its downward trajectory.
RoboForex | 7h 11min ago
Gold Shines as Trade Tensions Rise

Gold Shines as Trade Tensions Rise

On July 14, global markets turned risk-off after President Trump revived tariff threats targeting the EU and Canada. Gold surged past $3,350 on safe-haven bids, while USD/CAD spiked near 1.3700. EUR/USD rebounded toward 1.1700, and NZD/USD slid below 0.6000 ahead of key Chinese trade data. GBP/USD remained pressured around 1.3500 amid Brexit silence.
Moneta Markets | 7h 55min ago