Our thoughts this week start with the parts of Eastern Australia again affected by severe flooding. It seems incredulous that we can move from record heat wave to flash flooding all within 2 weeks. One also begins to wonder if 1 in 100 year floods are correctly labeled if they occur every 2 years.
On the markets the biggest move has been in the AUD/USD exchange rate which is currently sitting at 104.2 its lowest level since the start of 2013. Westpac are forecasting the dollar could fall back to 103.6 but will average 106-107 for the H1 2013. So in other words they have hedged their bets with a prediction for both a fall and a rise.
METALS-Copper climbs on China growth hopes, lofty euro
SINGAPORE, Jan 28 (Reuters) – London copper rose on Monday, as the euro strengthened on signs economic recovery is taking root in Europe and after the head of China’s sovereign wealth fund said that growth in the country could accelerate more quickly than expected.
Metals were sitting bang in the middle of their year-to-date range early on Monday, underpinned by generally improving sentiment on top consumer China’s economy since it showed green shoots of a rebound in October.