The mood in global markets is gloomy, with tumbling commodity prices taking bigger tolls. The fall in the price of copper and the crash in Glencore’s value are all related to China.
And as an exporter of commodities, the Australian dollar is suffering as well.
More: 5 reasons for the fresh global gloom
The most recent news from China is that the authorities are considering more stimulus, not exactly a disaster. However, last week’s 6 year low in manufacturing PMI continues echoing.
Glencore is a big company in the mining sector. After falling heavily in London, it continued its crash in Hong Kong, with a double digit drop of over 20%. The company is mired in debt and the sell off also affects other equities.
The gloom is also fueled by a video made by investor billionaire Carl Icahn, as well as an article by Bloomberg that talks about a “full blown crisis” in commodities.
0.6935 serves as a double bottom, after working as a low also on Friday. Can the pair push below this level? At the moment, the pair trades just above these lows.
Below, we find the round number of 0.69 and above, 0.70 continues serving as a battle line.
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