Commodities back on track with weaker dollar - ANZ
Analysts at ANZ noted that commodities moved higher as a weaker USD sparked a broad move back into risky asset classes.
Key Quotes:
"Investors shrugged off another rise in the US rig count, instead buoyed by continued signs that current prices are still unlikely to incentivise US producers to increase production. Nickel lead the gains amongst the base metals as concerns over rising surpluses eased. Norlisk Nickel, the world’s largest nickel producer said the market will be in a 60kt deficit this year, before tightening even further in 2017.
Iron ore remains stuck in a very tight range, with weak steel prices in China negating a pickup in investor demand as the USD weakened. Recent economic data in China as quelled the positive sentiment in the sector, with mills refraining from restocking."