With many businesses now back from holiday, for the most part markets have picked up where they finished last year. The Australian dollar is currently trading around 1.05 and seems quite comfortable in it’s current range. Not since the middle of October 2012 have we seen the dollar below 1.03.
International traders have come back into the market although most seem happier to dip their toe in the pool other than to dive in before some market stability is seen over the next few weeks. Traders are happy to be quoting prices, however many seem a little conservative that this early stage of the year.
**** DJ MARKET TALK: Tricky Copper Is “A Range-Trader’s Dream” ****
By Laura Clarke @ dowjones.com
1436 GMT [Dow Jones] Somewhat stuck in the mud, copper had proved difficult to trade in recent months, says RBC Capital Markets. “Copper held up the best last week during the selloff as it hugged the $8,100/ton level on the close [but] so far [Monday] the negative sentiment which took zinc and aluminium lower [has] caught up to copper,” notes RBC. “Copper remains the tricky metal for us as, while we are bullish the LME family, copper has really not shown a desire to break either up nor down over the past year–truly [it] has become a range traders’ dream.” LME 3-month copper down 0.6% at $8,036/ton.
**** WEATHER analysis to be released today is expected to show Australia is sweltering through its hottest days in history. ****
Bureau of Meteorology forecast modelling estimates show the mercury was expected to hit a new national record yesterday and today. The previous national high of 40.17C set was on December 21, 1972. Yesterday’s national temperature will be released at 2pm.
We’re not even at the half-way mark and it’s already looking like the cruelest of summers, with catastrophic weather conditions on the card. Monday may only be a record for 24 hours, as today is expected to be even hotter as the spread of heat widens.
The national temperature is calculated from about 700 weather stations across the country, but is processed as a mathematical interpolation instead of an average.
Bureau figures for Sunday, released yesterday, show the national temperature was 39.71C, and marked the first time it has stayed above 39C for five days in a row. But bureau climate monitoring manager Karl Braganza said he expected that record to stretch to seven days when yesterday and today’s figures were calculated. “The forecast for today and tomorrow is expected to exceed that record of 40.17 degrees,” Mr Barganza said. “It will be touch and go, these records are hard to break. But we’re expecting to at least give it a good push.”
The hottest place today is forecast to be Oodnadatta in South Australia, at 46C. The coolest places should be in national parks on the southern tip of Tasmania, at 16C.
The bureau believes waves of heat will repeat every few days until a monsoon breaks the pattern.
Weather services assistant director Alasdair Hainsworth said a low near Timor could develop into a cyclone in the next day or two, but he added that without a circuit breaker, the waves of extreme heat would continue. “Unfortunately, with this super-hot air, we could see this pattern continue repeating itself for a while until we see the hot air flushed out,” he said.