Iron ore prices surged by 10% to $260 per ton on Monday.
The pair is also reacting to the latest US non-farm payrolls data.
react to the weak US non-farm payrolls published on Friday and the surging iron ore prices. It is trading at 0.7842, which is slightly below Friday’s high of 0.7863.
US dollar index price action
Iron ore surges to record
Australia is a leading commodity exporter, especially to China. The country sells commodities worth billions of dollars every year. Iron ore, which is used to manufacture steel, is one of its most important commodities.
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5/10/2021 6:37:46 AM GMT
The Australian dollar rose in the morning session as traders reacted to the mixed economic data from Australia. The data showed that headline retail sales rose by 1.3% in March, a slight decline from the previous 1.4%. This performance was better than the median estimate of 1.4%. Overall, sales declined by 0.5% in the first quarter after rising by 2.5% in the previous quarter. Analysts were expecting for the sales to fall by 0.4%. The currency possibly rose because of rising commodity prices and the overall weaker US dollar. The Bloomberg Commodity Index rose by 0.37% as investors priced-in strong recovery of the global economy. Indeed, Australia’s ASX rose to an all-time high helped by BHP and Rio Tinto.
by Tyler Durden
Monday, May 10, 2021 - 08:01 AM
S&P futures started the weak flat with Nasdaq futures falling offset by surging commodity stocks as a new record in copper and iron ore prices stoked concern about whether inflation will derail a growth rebound in the world’s largest economy and spoil a record stock rally. Metal producers were among the biggest gainers in premarket trading, with Freeport-McMoRan, Cleveland-Cliffs and United States Steel all up at least 3%.
At 715 am ET, Dow e-minis were up 109 points, or 0.31%, S&P 500 e-minis were up 3.25 points, or 0.08%, and Nasdaq 100 e-minis were down 35.5 points, or 0.26%. The tech-heavy index has been whipsawed by the prospect of inflation which threatens longer-term profit expectations typical of the industry A downgrade by Citi of Internet stocks such as GOOGL did not help. Treasury yields steadied as traders brace for a busy week of auctions.
The Straits Times
A Fed Governor said that vulnerabilities associated with elevated risk appetite are rising.PHOTO: AFP
Published5 hours ago
https://str.sg/Jtno
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