With LME prices down and the Australian Dollar trading in positive territory following sub 0.73 levels throughout the past week, metal prices are under pressure at this time, particularly with the lack of demand being seen in the industrial sector.
During these times, traders of metals and end users tend to buy only the stock they require to get them through the next trading or manufacturing period as nobody wants to be caught with high priced stock from which to manufacture their products.
The Australian Dollar currently trades at 74.1.
Please find the following for your perusal;
**** DJ LME Copper Hits Six-Year Low Again — Market Talk ****
Copper futures are fractionally higher, trading up 0.1% at $5,176/ton, after hitting a six-year low earlier in the session. The red metal slipped to $5,118/ton — its lowest level since July 2009 — following weak Chinese trade data released over the weekend. China’s exports in July fell 8.3% from a year earlier, while imports fell for the ninth month in a row.
**** DJ Aluminum, Copper Near Six-Year Lows — Market Talk ****
0637 GMT [Dow Jones] Aluminum and copper futures are trading near multiyear lows in the wake of China’s weak trade data released over the weekend, extending a slide since late last month. China’s exports in July fell 8.3% from a year earlier, while imports fell for the ninth month in a row. Meanwhile, a solid U.S. non-farm payroll data released late on Friday indicated that the Federal Reserve could be on course for an interest- rate increase in September. That should strengthen the dollar and weigh on a range of commodities, including industrial metals, as they are priced in the currency.