The dollar index dipped by 0.02 to 97.03 as at 9.05am Shanghai time.
“During Wednesday’s testimony Fed Chair Powell said the better payrolls print did nothing to change the Fed’s assessment, which should resonate super-dovish,” Vanguard Markets noted in its morning note.
“A broad optimism in the financial markets following the Fed’s dovish testimony pushed commodities prices higher,” according to ANZ Research morning notes.
The copper price gained momentum, with its most-traded September contract price standing at 46,690 yuan per tonne ($6,766), up by 100 yuan per tonne – or 0.2% – from Thursday’s closing price.
“Chances are high that the Fed will cut interest rates and there has been a easing in trade tensions between the United States and China, both of which lend support to the copper price in the short term,” according to Guotai Junan Futures.
Meanwhile, the nickel price shrugged off positive news on the macro-economic side, with the most-traded September contract down by 270 yuan per tonne from Thursday’s close to 103,530 yuan per tonne at 9.05am Shanghai time .
“Nickel supply is sufficient, with steady output of nickel pig iron – a key material for stainless steel making. Meanwhile, demand for nickel is muted in China given the high level of stainless steel stocks,” according to Citic Futures.
“So the fundamentals don’t lend support for rising nickel prices,” Citic Futures added.
Other highlights
- The most-traded September tin contract price rose to 135,350 yuan per tonne as of 9.05am Shanghai time, up by 1,670 yuan per tonne from Thursday’s close.
- In notable data today, the latest Producer Price Index reading from the US and industrial output numbers from Europe are set to be released.