Iron Ore

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USD/CNH, Iron Ore, Copper: China stimulus pivotal to counteract domestic weakness, Trump tariff threat

Traders are eyeing China’s stimulus announcement on Friday. Will it be substantial enough to counter weak growth and Trump’s looming 60% tariffs? The market reaction for USD/CNH, iron ore and copper hinges on the detail.

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AUD/USD, iron ore, copper, silver wilt as China’s stimulus bazooka turns out to be a peashooter

Iron ore, copper and silver, along with the Australian dollar, were among the markets hardest hit by China’s latest stimulus announcement, falling heavily as it became clear the objective of policymakers is to stablise growth, not see it accelerate meaningfully as seen in other state interventions of the past. The “bazooka” many headlines and bullish narratives were based upon ended up being yet another peashooter.

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China markets stimulus special: Copper, iron ore, Hang Seng, A50 trade setups

We’ve seen plenty of short squeezes before that have quickly run out off puff. But with speculation swirling that policymakers may follow up Tuesday’s monetary policy easing with fiscal stimulus ahead of Golden Week holidays, that alone may be enough to promote further gains in the days ahead.

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Hang Seng, China A50, SGX iron ore: Rate cuts, lots of them, but does it solve China’s problem?

Chinese regulators will slash interest rates, free up cash for banks to lend and implement measures to support the stock market, designed to help address flagging economic activity and inflation. However, none of the moves directly boost demand, raising questions about just how effective they may be in delivering a sustainable improvement in sentiment.

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September 23, 2024 10:39 PM
Oil extraction

Crude oil, iron ore showing signs of life ahead of China data dump

If you purely focus on the fundamentals of crude oil and iron ore, you’d be rightly feeling bearish. However, fundamentals and direction don’t always agree in these increasingly financialised markets, meaning you should arguably put just as much emphasis on price action to guide your investment decisions.

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September 13, 2024 12:01 AM
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USD/CNH, China A50, SGX iron ore: Friday’s hopes meet Monday’s reality

USD/CNH is pushing higher on Monday while China A50 futures are sliding, reversing moves seen on Friday. Now, as was the case then, fundamentals underpinning the moves continue to link back to China’s spluttering property sector.

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September 2, 2024 01:09 AM
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Iron ore rebound may help ASX 200 futures power through the 'death zone'

Australian ASX 200 SPI futures are attempting to do something they’ve never done before: Successfully close the week above 8000 points. With extremely rich valuations in the local banking sector, it will likely require sentiment towards a soft landing for the global economy to be sustained, or a big bounce in iron ore futures, to make this attempt successful where so many others have failed.

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August 25, 2024 11:58 PM
Molten metal

Iron ore looks like a potential waterfall in the making

Iron ore looks like a potential waterfall in the making on the weekly chart, closing in on support that may resemble a dam wall disintegrating if and should it give way.

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August 14, 2024 02:14 AM
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China A50, SGX iron ore: Plenum pump reverses as bond yields signal growing economic alarm

Chinese markets are performing poorly despite policymakers cutting key policy interest rates last week. It’s been that way since the conclusion of the Third Plenum earlier this month, an event that delivered little in the way of concrete measures to help appease concerns about the trajectory for the economy.

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Stabilisation in commodity, US stock futures bode well for AUD/USD longs

AUD/USD has equaled its longest losing streak since August 2019, hammered by deteriorating sentiment towards the outlook for the Chinese economy and investor risk appetite, especially towards big tech. But with signs of stablisation in commodity and US stock futures, the grounds for a squeeze higher are growing.

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July 25, 2024 08:17 PM
Molten metal

Iron ore, copper crumble as China’s property downturn worsens

Given significant uncertainty towards the demand outlook, it may be preferable to let the price action tell us what to do rather than pre-empt on fundamental grounds.

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June 17, 2024 02:05 AM
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Iron ore may have bottomed as trading volumes surge

Iron ore futures are climbing off the canvas after a rough trot, surging higher on Thursday on the back of large gains in Chinese steel markets. But the reason behind the sudden buying burst makes you question whether the move will last, especially with inventories incredibly bloated relative to seasonal norms.

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June 6, 2024 07:03 PM
Quarry and various stones

Iron ore keeps finding buyers despite ballooning Chinese port inventories

Despite bourgeoning Chinese port inventories, widespread loss making at steel mills and no guarantee that measures to stablise China’s property market will drive increased construction activity, there’s seemingly no shortage of willing buyers of iron ore out there right now.

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May 29, 2024 10:31 PM
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ASX 200, SGX iron ore: Bullish breakouts on the menu, hawkish RBA a risk

Tuesday looms as a potential make-or-break session for Australia’s ASX 200 with futures sitting at a key technical level on the charts ahead of the RBA interest rate decision. One saving grace may be the continued rebound in iron ore futures in Singapore.

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The seeds for iron ore’s latest lurch lower were sown last week

Iron ore futures are in an increasingly ugly bear market, spiraling lower since the beginning of the year after defying bears for what seemed to be an eternity in 2023. With the price catching up to what fundamentals had been warning for months, traders are wondering how far the move can extend?

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March 13, 2024 12:47 AM
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Iron ore rally faces its next big test

Iron ore has been rallying hard but will stimulus speculation end in sorrow?

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August 23, 2023 02:01 AM

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