by SignalFactory · February 10, 2022 | 13:09:12 UTC
The Reserve Bank of Australia’s Index of Commodity Prices increased by 25.3% in SDR terms from a year earlier, led by higher LNG, coking coal, and thermal coal prices. The annual index growth slowed slightly from a 25.7% rise in December and was the lowest reading since February 2021. The index has increased by 30.9% in Australian dollar terms.
Commodity Prices YoY measures the yearly change in the selling price of exported commodities. Commodity exports have on average accounted for more than half of Australia’s export income. Because changes in export prices explain approximately three-quarters of the fluctuations in the growth of export values since 1990, developments in export prices can have a significant impact on export earnings and economic activity in Australia. The most important commodities in the RBA Index of Commodity Prices are iron ore (27.1 percent of the total weight), metallurgical coal (16 percent), LNG (15.8 percent), thermal coal (9.5 percent), gold (7.5 percent), and alumina (4.1 percent).
Oil prices rise: Energy shares including Santos Ltd and Woodside Petroleum Limited could have a decent day after oil prices are pushed higher. According to Bloomberg, the WTI crude oil price is up 0.5% to US$89.82 a barrel and the Brent crude oil price is up 1% to US$91.72 a barrel. Analysts are warning that oil prices could hit US$120 if Russia invades Ukraine.
Gold price rises: Gold miners Evolution Mining Ltd and Regis Resources Limited could have a decent day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.4% to US$1,835 an ounce. Traders were buying gold after the US dollar and Treasury yields softened ahead of the release of key US inflation data.
Iron ore prices take the elevator over the stairs: ASX 200 mining companies with exposure to iron ore also performed well during Tuesday’s session. These included strong share price appreciations across the titans of the industry such as BHP Group Ltd, Fortescue Metals Group Limited, and Rio Tinto Limited.
The strength in these blue-chip mining names comes amid a continued resurgence in iron ore prices. The rally placed iron ore futures above US$150 per tonne. A mere week ago, this figure was hovering around US$138. Meanwhile, if we backtrack to November last year, the price was approximately US$92 per tonne.
According to reports, strong fundamentals and a potential for a supply shock are providing upside pressure to the steelmaking commodity’s price.
ASX 200 Long (Buy) Enter at: 7328.21 T.P_1: 7627.20 T.P_2: 7817.63 T.P_3: 7981.99 S.L: 7097.46
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.
