News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The US Dollar, British Pound, and Euro will all be closely watching key geopolitical developments in North America (Powell testimony), the UK (Brexit talks) and Europe (EU summit). Get your market update from @ZabelinDimitri here:https://t.co/q4AJW6PTCu https://t.co/aAhCrBCBtX
  • Gold and silver are at risk of extending their slide from monthly highs as the lack of additional fiscal stimulus and rising geopolitical tensions underpin USD. Get your market update from @DanielGMoss here: https://t.co/sYF5pV9zrE https://t.co/04Czwv3PpW
  • #Nasdaq 100 Recovering? Biden-Trump #Election2020 Betting Spread Widens⬇️ https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/22/Nasdaq-100-Recovering-Biden-Trump-Election-Betting-Spread-Widens.html
  • Join @ddubrovskyFX 's #webinar at 8:00 PM ET/00:00 PM GMT to find out what information you can gain from knowing what other traders are buying or selling. Register here: https://t.co/Bb3CTCTm44 https://t.co/QaZzPd0K6D
  • The US Dollar is struggling against ASEAN currencies despite weakness in the S&P 500. Capital remains flowing into emerging markets, keeping USD under pressure, could this change? Find out from @ddubrovskyFX here:https://t.co/nwhy3XhE74 https://t.co/7nvijaAruu
  • Retail CFD traders have poked their head back into net bullish territory - an uncommon territory - in their net positioning for the $DJIA (Wall Street). Skeptical of a breakdown it seems https://www.dailyfx.com/sentiment?ref-author=Kicklighter&CHID=9&QPID=917719 https://t.co/g12EqBGkGh
  • The Nasdaq 100-tracking QQQ ETF saw more than -$3.4 billion leave its coffers on Friday. Get your #Nasdaq market update from @PeterHanksFX here: https://t.co/NZWg2XrEuD https://t.co/S9uxEGzJjJ
  • The $QQQ ETF recently saw its largest outflow, followed by its largest inflow since October 2000 What does this mean for the Nasdaq? Read more - https://www.dailyfx.com/forex/market_alert/2020/09/22/Nasdaq-100-Forecast-Exodus-from-Tech-ETF-Has-Worrisome-Historical-Parallel.html?ref-author=phanks&QPID=917701&CHID=9 https://t.co/bS0V5IsS6Z
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.05% 🇳🇿NZD: -0.49% 🇪🇺EUR: -0.55% 🇨🇭CHF: -0.58% 🇬🇧GBP: -0.62% 🇦🇺AUD: -0.74% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/2JBbEKosO9
  • South African Rand clawing back yesterday’s depreciation against the US Dollar. Get your $USDZAR market update from @WVenketas here: https://t.co/9XCvJgRisU https://t.co/qk5KR4DncU
Copper Choppy with China Re-open; Oil Rally Reverses on Rising Supply

Copper Choppy with China Re-open; Oil Rally Reverses on Rising Supply

2015-10-08 04:36:00
Nathalie Huynh,
Share:

Talking Points:

  • China market re-opening boosted volatility as general risk buying mixed with profit-taking
  • Oil reversed from 2-day rally as US official data showed growing inventories and output
  • Copper swung on position adjustments, though supported by supply squeeze
  • Gold subdued prior to Fed’s meeting minutes

The oil rally in Asia and Europe was just shy of $50 mark before it reversed half way through the US session and dragged equities down. Oil shrank nearly $2 after the much anticipated weekly report by U.S. Energy Information Administration showed a rise in both inventories and production, contrasting to the API’s report a day before.

US inventories rose by 3.07 million barrels in the week ended Wednesday, while output expanded for the second time in 3 weeks and refinery utilization dropped 2.3 percent. The recent supply-driven rally may not be sustainable until positive changes on demand contribute to the equation.

The US Congress will consider a bill to end the 40-year oil export ban this week. A lift would support international oil prices and offer a way out for US energy producers amid falling demand and increasing production. The ban was put in place after the 1973 Arab oil embargo and has become outdated as hydraulic fracturing or “fracking” enabled wider and cheaper extraction of oil and natural gas.

Copper witnessed sharp swings on both the LME and SHFE exchanges as China market started its first day back at work. Both volatility and liquidity in Asia are set to rise as market sentiment alternates between selling for profit at high levels and buying the risk rally.

Copper has retreated below the 23.6% Fibo at 2.3775 and unlikely to climb back up today. This resistance capped the topside during September 23 – October 6 despite various attempts to test. On the downside, copper garnered support from tightening supplies as inventories tracked by the London Metal Exchange fell for an eighth day to the lowest since June, and stockpiles in China bonded-warehouses are said to shrink 22 percent last month.

Goldpared two-day gains and retreated from a weekly high in the US session as market positioned prior to China re-open and a release of the last Fed’s meeting minutes. It was also dragged down by the sharpest drop in silver since September 28.

Gold has stabilized above a support at 1142.07 with seemingly muted action during Asia trade, before volatility picks up with Fed’s minutes release. Gold prices will be more vulnerable to downward moves if a rate hike in 2015 is deemed alive from the statement.

GOLD TECHNICAL ANALYSIS – Gold lowered in line with other commodities to touch down on a former resistance level – now turn into support – at 1142.07. Its reach up into the resistance area comprising of Fibo and past daily high at 1151.7-1156.8 during the overnight rally, though failed to break through. Overall, gold remains range-bound with focus on downside extensions.

Copper Choppy with China Re-open; Oil Rally Reverses on Rising Supply

15-minute Chart - Created Using FXCM Marketscope

COPPER TECHNICAL ANALYSIS – Copper retreated below the September – October resistance and 23.6% Fibo at 2.3775 after a brief break yesterday. As we observed in the last few reports, momentum is now poised to turn down after reaching the upper bound of range. Until a downturn is confirmed, copper will likely linger close to the resistance level which may offer opportunities for the bears to consider short positions.

Copper Choppy with China Re-open; Oil Rally Reverses on Rising Supply

Daily Chart - Created Using FXCM Marketscope

CRUDE OIL TECHNICAL ANALYSIS WTI oil retreated near an intraday support level at 47.70 for the third time since it reversed the rally in US. This support is but a short distance from the 38.2% Fibo at 47.21 and 5-day moving average at 47.39 on the daily chart, therefore may hold out today. Brent oil follows WTI to stabilize lower. However higher extensions are not yet ruled out at this stage, given sufficient upward momentum.

Copper Choppy with China Re-open; Oil Rally Reverses on Rising Supply

15-minute Chart - Created Using FXCM Marketscope

--- Written by Nathalie Huynh, Currency Strategist for DailyFX.com

Contact and follow Nathalie on Twitter: @nathuynh

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES