The surprising resilience in markets following US missile strikes in Syria is poised to continue into the start of trade Monday morning, even as the continued sharp retreat in the iron ore price weighs on the Australian dollar.
ASX futures are up 14 points, pointing to a 0.2 per cent early advance in a shortened four-day trading week ahead of the Easter break.
The Aussie dropped below US75¢ on Saturday morning after the spot price of iron ore shed 6.8 per cent to $US75.45 a tonne, taking its swoon to 20.5 per cent from February 21, a steep enough fall for it to be now in official bear market territory.
The slide in iron ore, long mooted by a range of industry executives and brokerage analysts, reflected a sharp drop in both Chinese iron ore and steel futures. Despite Friday night's plunge, the US-listed shares of both BHP Billiton and Rio Tinto held relatively firm over the weekend, edging down 0.5 per cent and 0.9 per cent, respectively.
Perhaps the strength of oil, gold, aluminium and nickel helped.
Oil touched its highest in a month after the US missile strike on a Syrian air base and on positive speculation OPEC members will agree next month on extending their quota cuts beyond the initial six-month period in a bid to further dent the global glut.
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