Crude oil dropped drastically, hitting its lowest since late July, as mixed Chinese economic data and rising OPEC exports eased fears about tight markets and as the dollar strengthened as per the latest commodity market news coming in.
The U.S. dollar strengthened against the major counterparts in anticipation of Federal Reserve commentary about a too strong U.S. economy which could require another interest rate hike to tame inflation. Further, the Australian dollar slid after the country’s central bank raised interest rates but hinted the hike was the last of the current tightening cycle.
The Australian dollar weakened after the Reserve Bank of Australia hiked interest rates by 25 basis points at 4.35% to combat stubborn inflation, as expected, but indicated that further tightening was unlikely.
The Australian currency was last down 0.88% at $0.6431 and is on course for its biggest one-day percentage decline in a month. It reached a three-month high of $0.6523 on Monday.
Bullions as U.S. Treasury yields continue to climb. This trend was mirrored in silver and platinum futures for December and January delivery respectively, experiencing downturns in their prices.
Copper prices retreated, reversing some gains made over the past week after data showed that China’s exports fell more than expected in October, while the country’s trade surplus narrowed to its worst level in 17 months as per the latest commodity market news.
The dollar index which measures the currency against six major counterparts rose 0.23% at 105.503. MCX Gold future settled at 60347 down 0.70%. Silver at 70634 down 2.06%. Copper prices settled at 709.90 down 0.53%. Crude oil settled at 6507 down 4.67%. Natural gas settled 262.50 down 3.49%.
Commodity Market News | Economic data and events scheduled
Japan
At 10.30am – Leading Indicators. Data is foreseen at 108.8% from previous 109.2%.
Above data could have a negative impact on Yen.
Eurozone
At 12.30pm – German Final CPI m/m. Data is foreseen at 0.0% from previous 0.0%.
At 1.15pm- French Trade Balance. Data is foreseen at -8.1B from previous -8.2B.
At 2.30pm- Italian Retail Sales m/m. Data is foreseen at 0.1% from previous -0.4%.
All day – Eurogroup Meetings.
At 3.30pm – Retail Sales m/m. Data is foreseen at -0.2% from previous -1.2%.
Above data could have a negative impact on the Eur.
UK
At 3.00pm- BOE Gov Bailey Speaks
CANADA
At 7.00 pm- Building Permits m/m. Data is foreseen at -0.50% from the previous 3.4%.
Above data could have a negative impact on the dollar.
U.S.
At 3.45pm – FOMC Member Cook Speaks
At 7.45pm – Fed Chair Powell Speaks.
At 8.30pm- Final Wholesale Inventories m/m. Data is foreseen at 0.0% from previous 0.0%.
Above data could have a volatile impact on the dollar.
Commodity Samachar
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