Copper’s diagnosis is in; the global economy is in great shape! More specifically, we have a backdrop where global growth is improving and the world’s three largest economic regions (US, Europe and China) are doing fine.
Australia is a big Cooper exporter I believe this backdrop has been and will continue to be constructive for industrial metals.
Over the past few weeks we have confirmed a number of bullish breaks in the industrial metals complex. Although some of these moves have been driven by supply concerns/relaxing of tightening in China, I believe these breaks will have further upside follow through primarily as a result of improving global/Chinese growth dynamics
However, we are near pivotal levels and given certain positioning dynamics, caution is warranted.
A continuation of recent industrial metal strength should be constructive for AUD, CLP and BRL over the medium term.
|Comments||Allow several weeks for target to be met|