Iron Ore gains of 2% cushioned the Australian Dollar from falling on Friday but downside momentum continues, as the aggressive selloff is likely to continue amid the USD resurgence. Technical support of 0.7525 remains the first target for shorts in attempt for 0.7500.
A powerful magnitude 7.5 earthquake struck New Zealand in the early hours of this morning causing severe damage to the South Island and the nation’s third largest city, Christchurch, whilst also violently shaking the capitol, Wellington. The New Zealand Dollar shed 50 pts as it was sold against the US Dollar as the earthquake adds to the Downside momentum from Friday. At the close of last week, the New Zealand Dollar was the strongest performer of the commodity currencies despite losing 1.05% at the close of the NY session. Wellington is still recovering from the devastating earthquake in 2011 that killed 185 people.
The US Dollar finished the week higher despite the enormous uncertainty from its presidential election. Trumps visit to Washington to meet President Obama and House Speaker Ryan was taken positively by the markets that continued to gain amid him cutting corporate taxes and spending on infrastructure. The Dow Jones continued its mighty rise by another 0.21% as the Nasdaq reversed previous day losses by gaining 0.54%, whilst the S&P finished lower -0.14% as the commodity complex pulled down. GBP was the largest gainer for the week against the USD rising 0.69%.
Despite reaching a week high on Wednesday of 1334, Gold closed at 1225 after falling 2.2% throughout to six month lows. Traders bought Copper heavily due increasing demand from Trumps proposed infrastructure plan seeing it gain 11% throughout the week until the NY session when it closed 1.3% down at 2.5051. Oil dropped 2.9% as the December contract finished near Wednesday lows of 43.20.
easyMarkets in the news, with thanks to SBS World News
