On the non-ferrous markets the big move this week continues to be the AUD/USD which has increased from last week’s level of 94.5 to today’s level of 96.5. It appears the short term resolution of the US government debt position has been viewed by the markets to be nothing more than a short term solution and further uncertainty is only a matter of time.
*****DJ LME Metals Rise, Supported By China Economic Data
By Laura Clarke
Base metals on the London Metal Exchange rose in Europe Monday, on the back of a slew of upbeat economic data from China–the world’s top consumer of industrial metals–that pointed to healthy demand.
LME 3-month copper traded 0.2% higher on the day at $7,259 a metric ton, while aluminum rose 0.6% to $1,857 a ton
“Metal prices are trending largely sideways – with a positive undertone – as the new week gets underway,” noted metals analysts at Commerzbank. “They are finding moderate support from firm Asian equity markets and the still weak U.S. dollar.” The U.S. dollar has softened since September, making the dollar-priced metals more appealing to buyers holding other currencies.
Data Friday showing China’s economy grew at its quickest pace so far this year between July and September, supported base metal prices on hopes of improved demand. Import data Monday showing copper shipments into China rose 18% in September, helped sustain the positive momentum.