As we swiftly approach the end of the financial year, we find market conditions on a slight decline. The big mover this month has been the Australian dollar which affects all commodities. Opening the month on the HSRA at 0.9721, our currency will now buy US 1.01125, a level not seen since the beginning of May.
Notably, we saw Aluminium and Lead’s official LME USD price at exactly the same level yesterday (AUD1912.59), reasonably steady for lead, however with Aluminium having started the month at LME AUD 1992.59, things seem to be going from bad to worse for Aluminium. This seems a little surprising considering the wide range of applications that Aluminium is used in. A further fall on Aluminium was also seen last night, now trading at AUD1861.06, its lowest level in 3 years (4 June 2009)
**** METALS-Copper gives up gains as Greek election relief fades **** By Maytaal Angel and Eric Onstad
LONDON, June 18 (Reuters) – Copper fell on Monday, reversing after touching a three-week high early in the day, as relief that pro-bailout parties in Greece won a slim majority soon turned sour and the investor focus turned to debt and banking problems in Spain, Europe’s fifth-largest economy.
All major base metals on the London Metal Exchange slipped into negative territory with the fading of a burst of optimism, which followed a narrow election victory on Sunday by Greece’s centre-right New Democracy party, which will try to form a coalition to back the international bailout and stay in the euro zone.
“In the short term it’s hard to see how there’s going to be a convincing rally with all of the ongoing macro problems overhanging the market. It’s so much driven by the changes in sentiment for Greek elections, French elections, the Fed meeting coming up,” said analyst Wiktor Bielski at VTB Capital in London.
**** Dollar hits five-week high against greenback **** By Deborah Levine from MarketWatch
The Australian dollar rose to its highest level in more than five weeks overnight, inching higher above parity with the US dollar, as US stocks managed to recover after Spain-inspired worries overshadowed the outcome of Greece’s weekend election.
The Aussie bought 101.27 US cents, reversing a decline earlier during US trading and up about 0.1 per cent on the day. In early local trading today, the dollar dropped back slightly to trade at 101.18 US cents, up from 101.14 US cents at yesterday’s close.
While the Australian dollar has been above parity for quite a bit of the last year, it’s unusual over a longer-term horizon; before 2010, it hadn’t surpassed parity for 20 years.