Dalian Iron ore futures down 8%, Aussie hits fresh lows

Chinese iron-ore futures extend sell-off for the second straight session today, adding to yesterday more-than 6% drop, largely on the back of profit-taking and technical selling. While some traders cite liquidity concerns as one of the reasons behind the selling spiral.

The ferrous metal is down almost 8% so far this session. On Tuesday, May iron-ore on the Dalian Commodity Exchange (DCE) fell 6.3% to end at 577 yuan per tonne.

The steep drop in the iron-ore futures appear to be the main catalyst behind the latest leg down in the Aussie. The AUD/USD pair drops to fresh session lows of 0.7464, down -0.24%. Iron-ore is Australia’s top export product.