AUTOREFRESH 
Rio Tinto says Q4 iron ore prices to fall by 13.3%
By Sean Lee || September 2, 2010 at 22:28 GMT
|| 7 comments || Add comment
The adjustment in pricing is related to the new pricing mechanisms which the major producers have implemented (over the Reuters newswires).
Obviously this type of price decrease will have some sort of negative impact on currencies like the AUD, CAD and BRL as the year progresses. The AUD/USD has slipped 15 pips, now back below .9100.
Good morning, Sean. AUD/JPY remains (“day 4″) in a consolidating, declining wedge, so why not “sell now” (76.733) and scamper away around September 1st’ low of 76.124? Or, you still see the threat of BoJ intervention too high to entertain this “risk-off” day trade?
Morning Solange. I think there is not much chance of any actual intervention but I’m still unwilling to take an intraday punt on it. I certainly agree with the trade direction and as we are ‘only’ 150-200 pips away from the wedge top and the 100-day, it’s certainly time for the bears to be considering easing into a short position
This will have no big effect on Aussie — it’s still in a pretty big uptrend…..my Euro short squeeze is still showing legs…..
“as the year progresses”
Thanks for the AUD/JPY comment, Sean. Now, what about a studied opinion on today’s upcoming “main trading entree” (“tonight’s” 12:30 GMT, US Gov’t. “NFP” announcement)? If we assume that whatever number is issued finds “the market” offguard, then the usual high-beta currency pair suspects (USD/JPY, EUR/USD & GBP/USD) should react in a potentially profitable manner; and, if we peer into the charts of the said suspects, I find that there isn’t that much wiggle room in the USD/JPY to get excited about (unless a crash through 83.70 is all of sudden in the cards), whereas the EUR/USD’s chart shows a nice 100 pip spread (between where the pair is currently hiding and August 18th’s high of 129.212) and the GBP/USD might all of sudden get motivated to attempt to breach the ceiling (at about 1.55200) of its now 2-week old declining channel – a potential frolic of over 100 pips. Your take (if any)?
Thanks Solange. I’m afraid I’m a bit clueless on the major pairs at the moment. USD/CHF is the only one where the bigger levels seem clear to me with flat trendline support just above 1.0000 and a breakdown level at 1.0220 as resistance seeming like the important parameters.
Hi Sean. Did all you FXDD traders get the Leverage letter/email today? The malta direct link is http://www.fxdd.com.mt if you didn’t get it. Good luck today everyone!