Stronger USD weighing on commodities – ANZ
Research Team at ANZ, notes that commodities were mixed as a stronger USD weighed on the sector.
Key Quotes
“Oil fell sharply late in the trading day as profit taking emerged leading into the quarter end. Prior to that, easing supply disruptions had also played its part in keeping downward pressure on prices. Industrial metals shrugged off the stronger USD, instead focusing on the easing monetary policies in Europe and Japan.
Gold continued to edge higher, as investors show no signs of liquidating positions despite global risks easing. Holdings of gold-backed ETFs inched higher, with another 7.6 tonnes added on Wednesday. Iron ore maintained its upward momentum, with steel prices in China driving the sector. However, physical buyers were few and far between, suggesting this latest rally is reaching its limit.”