Unfortunately in market news, things don’t get any brighter. Copper markets have again seen a fall, now trading at the lowest level in five and a half years. In Australian dollar terms, the copper market has dropped by almost AUD900/t from the beginning of January.
Other metals remain “reasonably” stable, particularly with the substantial fall that we have seen in the Australian Dollar over the past few months.
**** Australian dollar drops below 79 US cents on RBA rate cut bets **** January 26, 2015 – 12:51PM By Will Willitts
The Australian dollar has tumbled below US79¢, maintaining a slide that began in earnest in November and which has taken it down 17 per cent from a recent high near US95¢ less than seven months ago.
At 8:01am AEDT, the dollar was trading at US78.83¢, down from US79.90¢ on Friday. It was the first dip below US79¢ since July 2009. The Aussie has been battered as the US dollar has steadily gained strength with the recovery in the world’s second-largest economy and as the euro has declined with news of the European Central Bank’s €1.1 trillion ($1.56 trillion) bond-buying program.
**** DJ Copper Falls to Fresh Five-And-A-Half-Year Low in Asia Trade — Market Talk **** By Biman Mukherji @ wsj.com
0324 GMT [Dow Jones] Copper prices fell to a fresh five-and-a-half-year low in early Asia trade. A strengthening dollar, following the European Central Bank’s bond buying program last week, and a weak demand outlook from China’s property sector is weighing on the red metal.
**** DJ LME Copper Down On China ‘New Normal’ Concerns — Market Talk **** By Ese Erheriene @ wsj.com
1235 GMT [Dow Jones]–Copper futures are much lower on the London Metal Exchange, trading down 1.0% at $5,466.00/ton, as worries about China’s ‘new normal’ growth strategy add to already bearish sentiment. The market is trying to work out what the new normal means for copper, says Eugen Weinberg, head of commodities research at Commerzbank. The term announced by the Chinese finance minister at Davos 2015, “is about the concentration on structure and quality of growth instead of just [GDP] numbers,” and moves by Chinese provinces to adapt to this by discarding growth targets has affected base metals, he says.