SaxoTV

Copper hammered as commodity prices fall again

816 views
January 14, 2015 aussie, aussie dollar, aussie dollar weakness, aussie economy, aussie weakness, aussiedollar, australia, australia currency, australia economy, australian central bank, australian dollar, australian dollar forex, australian economy, australian reserve bank, china, china economy, china growth, china manufacturing, china outlook, china politics, chinese, chinese economy, commodities, commodities markets, commodities prices, commodities supply, commodities trading, commodity, commodity currencies, commodity gold, commodity index, commodity investing, commodity investments, commodity market, commodity markets, commodity outlook, commodity prices, commodity sector, commodity strategy, commodity trade, commodity trading, commoditymarket, copper, copper demand, copper falls, copper futures, copper market, copper price, foreign exchange, forex, forex market, forex markets, forex trading, hedge, hedge fund, hedge funds, hedgefunds, industrial, industrial metals, industrial output, industrial production, lme, london metal exchange, saxo, saxo bank, saxo tv, trading, tradingfloor, tradingfloor.com, world bank
Commodities are at a 12-year low with copper falling almost 9% overnight before recovering slightly. Saxo’s Ole Hansen says the move downwards in this industrial metal was triggered by a technical break yesterday below USD 6,000 per tonne followed by the World Bank's decision to downgrade growth forecasts for 2015. 

On top of that demand for copper in China is waning. Hansen says just like oil, the high copper prices of a few years ago encouraged increased investment by mining companies. But now demand isn't keeping up.

No surprise that commodity currencies are also under pressure, most notably the Aussie Dollar. Ole reminds us that Australia is a big exporter of industrial metals especially to China.