I exited my 2nd long for a 30 point profit near the hourly EMA10. Another pullback towards 1.40 is likely before a new upmove towards 1.80.

NEW YORK (Reuters) – Oil prices fell 2 percent to below $70 a barrel on Tuesday after a drop in U.S. consumer confidence data in May added to concerns over a potential economic rebound.

NEW YORK (Reuters) – Oil fell 2 percent to below $70 a barrel on Tuesday after a drop in U.S. consumer confidence data in May added to concerns over a potential economic rebound.

NEW YORK (Reuters) – Oil fell more than 2 percent to below $70 a barrel on Tuesday after a steep drop in U.S. consumer confidence data in May added to concerns over a potential economic rebound.

Um, how come this story is in the Sydney Morning Herald (as of about 20 hours ago) and not the US/UK business media? This is a pretty major development. Yes, commodities heavy Australia is most affected, but Oz is hardly alone in seeing the ramifications.

While the US dollar is weakening, the Australian dollar has had an amazing run, and the only justification I could fathom for its outperformance (it normally moves with the euro, albeit with more amplitude) was the commodities/China angle. Australia was the only economy to see its exports increase since the global slump took hold.

From the Sydney Morning Herald (hat tip reader Sean):

A record-breaking run run of commodities exports to China that has sustained the Australian economy may be set to end, with Beijing officials and advisers announcing an end to “strategic” stockpiling, and massive iron ore contracts likely to expire today.

A key state planning official has signalled a halt to government buying of copper, aluminium and other high-value metals because prices have risen too high.

“We don’t anticipate that the country will continue to build its reserves,” said Yu Dongming, the head of the metallurgical department of the National Development and Reform Commission…

Zhang Bin, an economist with the Government’s most influential advisers, the Chinese Academy of Social Sciences, warned that Beijing was leaning against Chinese speculative buying of a range of commodities including Australia’s most lucrative exports, coal and iron ore.

“The commission is acting to reduce pressure on commodities prices and discourage over-production in heavy industry, including guiding steel production and reducing the building of excess capacity,” Dr Zhang told the Herald.

“Too much increase in inventories of commodities is not a good thing because the economy is still not that strong and cannot consume this level of imports of iron ore and coal.”…

“I think the risks are weighted to the downside,” Mr Rennie said. “If China does slow demand for those key commodities, it is not entirely clear there is another obvious buyer out there.”…

“Iron ore imports seem to have started to slow down,” said Paul Bartholomew, the Shanghai editor of Steel Business Briefing. “I can’t see it bettering the 57 million tonnes … in April.”

EUR/USD Current price: 1.4066 Hourly charts have turned bearish with current candle opening under 20 SMA that turned down and indicators giving bearish crosses (momentum has just cut under the 100 line). Reversing of risk appetite seen across the board supports more dollar bullish momentum for the next hours. Watch for 200 EMA around 1.4000 to hold the downside. Support levels: 1.4040 1.4000 1.3960 Resistance levels: 1.4100 1.4140 1.4180 GBP/USD Current price: 1.6523 Despite an intraday fresh

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Gold futures fall more than 1% as the dollar strengthens in the aftermath of lackluster data on consumer confidence and home prices, lessening the precious metal’s investment appeal. But one metals analyst sees gold firming from current levels.

LONDON (Reuters) – Oil prices fell more than 3 percent to $69 a barrel on Tuesday, pressured by a stronger U.S. dollar and as weak consumer confidence data hit equities.