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Iron ore futures are under downward..........>

METALS
METALS: Iron ore futures are under downward pressure today with the Sep-18 DCE
contract dropping 2% on the day to CNY484.0. Support comes in at the 55-dma at
CNY477.9.
- While this can be partly explained by the recent strength in the yuan making
commodities priced in the currency become cheaper, the metal has completely
decoupled from the broader industrial metals complex even when comparing in USD
terms. 
- Given iron ore's strong dependence on the Chinese economy, the metal's
outperformance vs the basket since the start of the year is in stark contrast to
the underperformance in the Chinese economy and markets. This trend is now
reversing. 

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