China up for curbing steel exports as costlier raw materials trim Industrial Profits

Having witnessed a fourth consecutive month of declining Industrial Profits, 20% YoY versus 36.4% prior in June, chatters over Chinese authorities’ further tightening of steel exports gain momentum.

“In the first half of 2021, industrial firms' profits grew a hefty 66.9% from a pandemic-induced slump in the same period a year earlier. Profits in January-June increased 45.5% from the same period in 2019, before the global pandemic started,” said Reuters.

AUD/USD extends bounce off intraday low

As Australia heavily depends upon metal exports to China, the good news for commodities helped AUD/USD to lick its wounds around 0.7380. Even so, the coronavirus resurgence, backed by Delta variant, in the country probe the buyers.

Read: Aussie Covid spread tainting bullish appetite in AUD