Australian dollar resilient against falling commodity prices

Open demo account
FOREX trading implies serious risk and can result in the loss of your invested capital

Financial and commodity markets analytics

The Australian dollar has remained resilient today, brushing off the slump in commodity prices, but a G20 meeting to be held in China on September 4-5 could be too hot for the currency to handle.

At 8.34pm (GMT) the Aussie dollar was trading at US76.15c slightly up from US76.12c in yesterday’s trading.

Iron ore, Australia’s biggest commodity may take a hit after the G20 meeting if as predicted, the Chinese government cracks down on pollution which may put the construction industry on hold,

“Common practice ahead of international events, China’s local governments will impose a number of restrictions on several industries to help improve air quality in the region  including the suspension of most construction activities, restrictions on ore sintering, cement, petrochemical and coke production,” Morgan Stanley said in a research note.

They also mentioned that this time of year is generally quiet for the construction industry and along with the G20 meeting, may pressure commodity prices like Iron ore which in turn would drag down the Australian dollar,

“Given that China’s construction activity eases over September-October, this event may act as a catalyst for a sell-off,” Morgan Stanley concluded.

All eyes are now on tomorrow’s speech in Jackson Hole, Wyoming from US Federal Reserve President Janet Yellen where investors will be looking for signs that an interest rate hike is forthcoming which in turn may put pressure on the Aussie dollar.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Fibo Markets

FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.) is authorized and regulated by the CySEC (licence no. 118/10) and operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Unfortunately, our services are not available to individuals residing in Canada, the United States of America, North Korea, Iran, Iraq, Israel, Australia, Belgium, or Japan.

29 Agias Zonis, 1st Floor, 3027, Limassol, Cyprus

© 1998—2023 FIBO Markets Ltd. (ex. FIBO Group Holdings Ltd.)

IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Please note that our services are provided only to the residents of the following counties (in alphabetical order): Austria, Bulgaria, British Virgin Islands, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Kazakhstan, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Oman, People's Republic of China, Poland, Portugal, Romania, Russia, Slovakia,Slovenia, Spain, Sweden, Ukraine, United Arab Emirates.

Please feel free to contact out Support in order to get further assistance.