SaxoTV
Hansen: China breathes fire into AUDUSD and commodities
575 views
The markets are looking a little calmer this Thursday after the Chinese stock market crash on Wednesday. Saxo's Ole Hansen on how China's state intervention appears to be adding some support to the markets.
First to FX and Hansen notes that the AUDUSD has benefited as iron ore prices recoverssome of their losses. On the other hand the Japanese Yen has weakened a little. Hansen also notes that the dovish FOMC minutes have helped EURUSD strengthen.
Industrial metals was the sector that was hardest hit by China's stock market crash. Copper is up 6% this Thursday. Oil prices too have recovered somewhat although all eyes are still on the Iran talks.
Precious metals have also been helped by the improvement in commodities in general, says Ole. But it's also those FOMC minutes that have added support to gold in particular. Ole though warns that the upside is probably still limited.