Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down

Iron ore prices have fallen over 12% from a two year high earlier this month over $US145 a tonne to $US127.5 on Tuesday. Prices had risen on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus to revive China’s troubled property market. China has continued to struggle; shipping has been impacted by the Red Sea attacks as a result commodity prices including iron ore have sold off. Commodity price sensitivity is … Continue reading “Iron Ore Prices Retrace 12% from Two Year Highs, Dragging Aussie Dollar Down”

Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market

Iron ore prices climbed to eighteen-month highs on expectations of healthy iron ore demand for winter restocking amongst growing optimism that Beijing’s latest round of stimulus will revive China’s troubled property market. December futures prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin rose to $139 per tonne the highest since June 2022. The benchmark January iron ore on the Singapore Exchange rose 1.4% to $US137.55 a tonne, up 2.7% for the week. The … Continue reading “Iron Ore at Eighteen Month Highs as China Walks a Tightrope Trying to Save Property Market”

Australia Trade Surplus Rises More Than Expected in May to $12.237 Billion

Australia posted a larger than expected trade surplus of A$11.791 billion in May, up from a downwardly revised AUD 10.45 billion in April, beating market forecasts of A$10.5 billion the Australian Bureau of Statistics reported. Exports rose more than imports. Shipments grew by 4.4% from April to A$57.77 billion, boosted by increases in non-monetary gold, with total exports to Australia’s largest trade partner China. rising by 9%. Imports rose 2.5% to a four-month high of A$45.98 billion powered by robust … Continue reading “Australia Trade Surplus Rises More Than Expected in May to $12.237 Billion”

Fitch Ratings Affirmed Australia’s ‘AAA’ With a Stable Outlook

Fitch ratings has issued its latest ratings report on Australia, affirming Australia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘AAA’ with a Stable Outlook. Australia’s growth pre-pandemic was one of the strongest in the developed world. and it has recovered from the Pandemic strongly than most with a strong trade surplus. Australia saw a rapid rise in the working age population with fast net immigration accounting for over half of the expansion pre-pandemic help fuel the strength. Key Ratings Drivers … Continue reading “Fitch Ratings Affirmed Australia’s ‘AAA’ With a Stable Outlook”

An RBA Fit for The Future, 51 Revolutionary Recommendations for Australia’s Central Bank

The release of an independent review on the Reserve Bank of Australia, An RBA fit for the future is the biggest clean up, if not revolutionary change for the RBA since inflation targeting and formal independence was established in the 1990s. The review gave 51 recommendations, which the Government gave in-principal support to all of them, were outlined by the Australian Treasurer on Thursday. The report identified 4 ways the governance, monetary policy framework, culture and systemsof the RBA should … Continue reading “An RBA Fit for The Future, 51 Revolutionary Recommendations for Australia’s Central Bank”

Forrest’s Nickel Battle with BHP Heats Up with Mincor Resources Bid

Australian mining magnate Andrew Forrest launched an AUD$760 million takeover bid for Mincor Resources, 35 per cent above Mincor’s closing price on Monday. The Mincor share price has fallen 49 per cent over the past 12 months. Forrest is using his privately owned Wyloo Metals, which already owns 19.99 per cent of Mincor. Mincor is a key supplier to BHP’s reborn Nickel West division. The lower impurity Mincor ore seen as an important part of the BHP nickel blend. Forrest … Continue reading “Forrest’s Nickel Battle with BHP Heats Up with Mincor Resources Bid”

China Removes Remaining Barriers from Unofficial Trade War on Australian Coal

China, desperate to kick start their economy and improve civil harmony has quietly removed trade restrictions imposed in late 2020 on Australian coal imports. Earlier this year Chinese authorities gave four major importers permission to resume purchases of Australian coal, which began shipping in January. Bloomberg reports that China’s ports and customs offices have been told to allow all domestic companies to import Australian coal, according to people familiar with the decision, who asked not to be identified because the … Continue reading “China Removes Remaining Barriers from Unofficial Trade War on Australian Coal”

Woodside Profit Trebled in 2022, Boosted by BHP Petroleum Merger and Oil and Gas Prices

Australia’s Woodside Energy, who merged with BHP Petroleum in June posted stellar full-year net profit more than trebled to a record in 2022 as oil and gas prices soared. The merger saw almost double production. The company also took control of Exxon Mobil’s 50 percent interest in the Scarborough gas field off Western Australia doubling their gas production. Woodside’s core net profit, jumped to $US5.23 billion in the year ended December 31, up 223 per cent from 2021, though less … Continue reading “Woodside Profit Trebled in 2022, Boosted by BHP Petroleum Merger and Oil and Gas Prices”

Australian Unemployment Rises to 3.7% with Unexpected -11,500 Job Losses

Australia saw weaker than expected employment in January driving unemployment to 3.7 per cent according to the latest jobs data from the Australian Bureau of Statistics. Employment fell by -11.,500 well below consensus for a 20,000 gain. Australia has had very tight labor market conditions with this move coming abruptly. The report may prompt some rethinking of the extent of RBA rate hikes ahead. Australian January 2023 Employment Source: ABS, Trading Economics From a Sunburnt Country The TradersCommunity News Desk

Australia Trade Surplus in December $12.237 Billion Impacted by Australians Travel Spend

Australia posted a trade surplus of A$12.24 billion in December, impacted by exports of mineral fuels and mining goods impacted by the war in Ukraine. The Australian Bureau of Statistics reported imports had risen by $445 million from November, driven by an increase in travel services as more Australians headed overseas for the holidays. Exports fell by $793 million. The report was amid softening global demand as China battled with a resurgence of coronavirus infections. When China slows down, Australian … Continue reading “Australia Trade Surplus in December $12.237 Billion Impacted by Australians Travel Spend”