The last week has seen the AUD/USD fall away and is currently at a 3 week low at 87.28. USD commodity prices remain steady although they continue to fluctuate temporarily wildly at the announcement of an obscure economic statistic.
DJ Copper Falls to One-Week Low on Stronger Dollar
By Tatyana Shumsky
NEW YORK–Copper prices retreated Friday as the dollar’s rally weighed on demand from foreign buyers, overwhelming support that came from Japan’s expanded stimulus program. The U.S. dollar neared a seven-year high against the yen and marked a fresh two-year high versus the euro. The violent currency market shifts came in response to Japan’s unexpected decision to expand its bond-purchasing program. ”A stronger dollar is a significant barrier to commodity prices because if you’re in Europe, Japan, China, or wherever the dollar isn’t used, copper is going to be so much more expensive to purchase, and that’s going to impact demand,” said Dave Meger, director of metals trading with Vision Financial Markets in Chicago. News that workers at Freeport-McMoRan Inc.’s Grasberg mine in Indonesia called off a planned month long strike also weighed on copper. Union leaders had threatened a strike by about 10,000 workers to protest unsafe conditions at the mine after two fatal accidents in recent months. However, talks with management yielded a resolution.