Bloomberg commodity index hit lowest since 2001

Global commodity prices have been hit hard over China, where government and regulators have so far failed to prevent melt down. China's benchmark stock market  CSI300 dipped by another -5.9% today as all measures taken so far fell short of preventing the rout.

Bloomberg Commodity Index, which tracks 22 commodities significant in world economy from oil to iron ore fell as much as 0.8 per cent to 96.80, its lowest level on a closing basis since late 2001.

Copper is currently trading at weakest level since 2009 crisis.

Crude oil this week broken a congestion pattern of eight weeks to the downside and likely to fall further.

Silver has broken to new three month low.

Iron ore prices are down 11% today.

These prices brings back focus to commodity currencies, which are likely to underperform against dollar.

Trade idea -

Sell Canadian dollar, Australian dollar, Russian Ruble, Colombian peso, Chilean peso, Mexican peso against dollar or basket of majors which comprise of USD, GBP, CHF and Yen. Euro is better to avoid due to Greek turmoil.