The combination of a slightly stronger USD and slightly weaker stock markets has undermined base metal prices and aluminium in particular. In FX markets, commodity currencies reflect this developing risk-off theme. Of particular note is the NZD, which has broken lower out of its recent trading range against the USD and looks primed to test 0.8085. AUD/USD breaking below 1.0595 today would complete a Double Top; target 1.0430 and suggest that the risk-off story is far from over.
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Barclays Capital