Metals tumble again in another wild day on Asian markets

Photo: Chung Sung-Jun/Getty Images.

Chinese markets continued their recent ructions in trade today with more volatility on forex, and in stocks and commodities.

The Shanghai Composite index was down around 2.8% at one stage before recovering to be off just 1% to 3,402 at 5.15pm AEDT. That’s a gain of more than 75 points from the low.

Commodity markets tumbled again, but also saw a slight recovery. A short time ago copper was down 1.56%, aluminium was down 2.67%, zinc had lost 1.665%, and nickel was off 2.93%.

Earlier in the day the PBOC allowed the onshore RMB fix, the USD/CNY, to drift a little weaker with a set of 6.3962. That’s left the onshore RMB rate at its weakest level against the USD since the August devaluation and recovery.

But, on the day when the IMF is expected to vote to include the RMB in its SDR basket, traders believe there was official intervention in the offshore RMB rate, USD/CNH, with large Chinese banks selling in order to close the gap between the two rates.

USDCNH – offshore, (MT4, AxiTrader)

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