A strong PMI has iron ore prices up through their 20 day moving average today, building on Friday's trend break

Dalian iron ore

Dalian iron ore Source: Bloomberg Dalian iron ore
Source: Bloomberg

I undertook to keep readers up to date with this chart given its current relevance to other markets. The next test looks to be the early March lows (dashed line). An overlap through that level would begin to look like iron ore could be in for a significant correction.

Today' better than expected PMI, news of small Chinese mines closing and reports that Indian steel makers will increase imports against a background of local shortages appear to be fuelling the current rally

AUDUSD chart

In the meantime AUDUSD is thinking about a break above the recent highs

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