Dollar Solidifies Payrolls Surge While China Trade Sinks Copper
- Traders now pricing in 68% chance of a December rate hike
- BHP drives Aussie stocks lower as yen drop buoys Japan
The double whammy of a stronger dollar and weak Chinese trade data weighed on copper and Australia’s currency, with most Asian index futures foreshadowing declines after U.S. payrolls data bolstered prospects of an interest-rate increase this year.
Both the Aussie and New Zealand’s dollar were near one-month lows as the biggest increase in U.S. employment this year underpinned the greenback. Copper futures fell a fourth day after Chinese trade slumped more than analysts anticipated, stoking bets that regulators there will have to expand economic stimulus. While Australian stocks opened lower and futures signaled losses from Hong Kong to Seoul, Japanese contracts climbed with the yen at an 11-week low. Oil and gold were steady after tumbling on Friday.