- Copper price declines drag AUD pairs lower
- Euro zone industrial production to show flat reading?
The Australian dollar suffered a massive wipeout in today’s Asian trading session even though there were no major reports released. AUD/USD is down 0.86% and is testing the .8100 handle while AUD/JPY is looking at 1.2% loss so far. The Aussie also weakened to the European currencies, with EUR/AUD recording a 0.92% gain and GBP/AUD enjoying a 0.86% win as of this writing.
As it turns out, the sharp tumble in copper prices dragged the Australian currency lower in the past few hours. Bear in mind that copper is one of Australia’s main commodity exports and that the steep price decline would mean lower mining revenues for the country.
There were no other major economic reports released in the past few hours, as other commodity currencies simply followed the Aussie’s footsteps. NZD/USD is down 0.3% and USD/CAD is up 0.29%, 15 pips shy of the 1.2000 major psychological resistance.
Up ahead, the forex calendar shows that it’s gonna be a data-light London trading session, with only the euro zone industrial production report up for release. A flat reading is expected for November, which might not be much of a surprise for most traders. Do stay tuned for any updates on commodity prices and market sentiment which might drive price action in the next few hours.
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