Copper To Follow The Aussie?
This morning we saw a contraction in the Caixin PMI out of China (49.7 vs 50.1 forecast), with the Australian Dollar moving lower, as a proxy for Chinese growth. Since February 2018 we have seen base metals under pressure, with Copper now triggering a multi-year bear flag formation (Watch out Anglo and Billiton).
On a multi-year time frame we have also seen AUDUSD track copper closely however since July 2013, the relationship has broken down. As they say, currencies lead, so will we see Copper follow the Australian Dollar lower over the next few years? I think certainly think so.
This morning we saw a contraction in the Caixin PMI out of China (49.7 vs 50.1 forecast), with the Australian Dollar moving lower, as a proxy for Chinese growth. Since February 2018 we have seen base metals under pressure, with Copper now triggering a multi-year bear flag formation (Watch out Anglo and Billiton).
On a multi-year time frame we have also seen AUDUSD track copper closely however since July 2013, the relationship has broken down. As they say, currencies lead, so will we see Copper follow the Australian Dollar lower over the next few years? I think certainly think so.