Analysts at ANZ explained that Iron ore surged 19%, its biggest gain in daily data (which started in 2009). Key Quotes: "While we can point to iron ore market specific factors (and what we suspect was a lot of short covering), we’ve seen a recovery across the broader commodity complex of late. Oil, for instance, has done a rope-a-dope, and come out fighting in the recent rounds. At USD30/bbl, forecasts for USD20 were rife. Next stop USD40. But will commodity price uplifts be sustained though? Positioning looks to have been influential; a 19% surge in iron ore smells of a massive short covering rout. Without going into the ins and outs of various commodities, history points to shakeouts as being protracted in length with supply adjustments sticky. Moreover, China needs to deleverage (which does not fit with the announced 6.5-7% growth target) and the world does too. And the market is taking an incredibly demure view of the Fed (funds rate) given unemployment and core inflation signals." For more information, read our latest forex news.