The dollar index was down by 0.1% at 92.47 as at 11am Shanghai time, this after it had spiked to a high of 92.91 last Friday despite disappointing US employment data for April – see data section below.
Aluminium prices have found support despite easing concerns about potential supply disruptions, stemming from the United States’ sanctions against Russian light metal producer UC Rusal.
The most-traded June aluminium contract on the SHFE traded at 14,660 yuan ($2,305) per tonne as at 11am Shanghai time, up by 85 yuan per tonne from last Friday’s close.
“Bauxite and alumina prices remain well bid, with this flowing onto the aluminium market,” ANZ Research noted on Monday.
Meanwhile, copper prices have come under pressure from renewed concerns over US-China trade tensions.
The most-traded June copper contract on the SHFE traded at 51,110 yuan per tonne as at 11am Shanghai time, down by 180 yuan per tonne from Friday’s close.
Last week saw the US and China began trade negotiations, with the former seeking to pressure China to open its markets and reduce behind-the-border trade barriers.
“However, both parties appeared to take a hard line in discussions, with the US insisting China cuts it $337 billion a year trade surplus with the US by almost two-thirds. This was quite different from the earlier optimism, and now raises the specter of ongoing trade tensions between the two counties,” ANZ Research said.
This week, all eyes will be on US President Donald Trump’s decision regarding the Iran nuclear deal on Friday.
Investors have increasingly priced in the impact of US pulling out but markets will likely remain jittery over any headlines before the May 12 deadline.
The London Metal Exchange is closed today due to national holidays. Base metals prices
Currency moves and data releases