Category: Financial Markets
Near 0.7445 is the 78.6 percent Fibonacci retracement line, which will be a test for the bulls.
AUD/USD Daily Chart
Despite the weakening news flow, the Australian dollar is trading at its highest level since July 19, testing the 0.74 level.
The Australian dollar has only retraced around a third of its losses this month. To test the July 6 high at 0.7600, a break above 0.7480 is required. If the RBA makes a dovish flip next week, this will become more difficult.
(Source: FactSet)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Fortescue has broken an export record for the second year in a row, having delivered 178.2 million tonnes from Western Australia’s Pilbara region in fiscal 2020. The business stated on Thursday that it expects to have a triple trick of record years in fiscal 2022, with a goal of shipping up to 185 million tonnes.
Fortescue shares rose 2% to a new record high of $26.40 on Thursday morning, owing to the better-than-expected result and forward outlook.
The company’s remarkable operating performance indicates that it has taken advantage of a window of high iron ore prices generated by strong Chinese demand and inadequate supply from major competitors such as Rio Tinto and Vale.
Rio manager Jakob Stausholm admitted on Wednesday night that the team needed to improve as an operator and perform better in the future.
Iron ore benchmark prices hit a fresh high of $US233 per tonne in early May, and the commodity was still fetching $US201.25 per tonne on Wednesday evening, according to price supplier S&P Global Platts.
Fortescue announced last year that it would spend a maximum of $US3.4 billion on growth projects, with a slide presentation from August 2020 implying that growth spending would be closer to $US1 billion in fiscal 2022.
If spending by its clean energy subsidiary Fortescue Future Industries (FFI) is added, the total could reach $US3.8 billion. FFI will invest between $US400 million and $US600 million in the coming year, according to Fortescue.
Aside from increased expansion spending, Fortescue predicted that unit expenses in the coming year might be 11% higher than in fiscal 2021.
(Source: Fact Set)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
While the weekly bottom near 80.60 may provide immediate support ahead of the monthly low near 79.80, the psychological magnet of 80.00 may act as an additional filter to the south.
It’s worth mentioning that the pair’s weakness beyond 79.80 will need to be confirmed by the yearly low near 79.20 before the AUD/JPY bears are directed to late December 2020 tops near 78.80.
The AUD/JPY currency pair is currently trading at 80.98, with a daily change of 0.05 percentages the same day.
AUD/JPY: Four-hour chart
(Source: FactSet)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
