The US dollar index stood at 94.95 on Thursday’ close, up 0.13% from Wednesday’s close, supported by the US Federal Open Market Committee announcement of a 25-basis-point-rise in interest rates at its meeting on Wednesday and hinting at another two more rounds of potential rate raises by the year end.
Moreover, weaker-than-expected Chinese economic data dragged down base metal complex further. China’s fixed asset investment rose 6.1% year on year in May, against a 7% rise the previous month, while the country’s industrial production rose 6.8% on an annual basis in May, compared with 7% growth in April
Market sentiment was also pessimistic following media reports suggesting US President Trump and his administration will be announcing a swathe of tariffs against Chinese products as early as today.
Aluminium recorded the largest losses of the morning session, with the most-traded August contract price on the SHFE dropping to 14,465 yuan ($2,260) per tonne as at 10.30 am Shanghai time, down 155 yuan per tonne from Thursday’s close.
Meanwhile, rising output also put downward pressure on the light metal.
Chinese electrolytic aluminium production reached 2.79 million tonnes in May, up 1.5% from the same period last year, according to data released by the National Bureau of Statistics (NBS) on June 14.
SHFE copper prices were down on weak demand ahead of the three-day Dragon Boat Festival in China starting tomorrow during Friday’s morning session.
The most active August copper contract price slipped 190 yuan per tonne to 53,440 yuan per tonne as at 10.30 am Shanghai time.
By contrast, the tin price edged up 0.16% to 147,670 yuan per tonne, well supported by forecasts of near-term tightness in the market.
Other base metals prices
Currency moves and data releases