China has issued new oil product export quotas to allow oil companies to send surplus barrels overseas, particularly Sinopec, which has the highest volume among quota holders. While the exact quota volume remains undisclosed, oil companies are forecasted to export approximately 3.5 million metric tons of clean oil products in September, a 10% increase from August.
All eyes on AUD and NZD
2020-06-17 • Updated
The fresh data from New Zealand and Australia will be released tomorrow morning! Follow up!
What will happen?
On June 18 New Zealand will report its quarter-to-quarter GDP at 1:45 MT time. Later at 4:30 MT time Australia will reveal the employment change.
Why is it important for a trader?
GDP is the broadest measure of economic activity and the primary gauge of the economy's health. Also, the unemployment rate is not less important as it shows how fast the economy is recovering from the coronavirus damage. These days the market is really volatile and hugely depends on the overall sentiment, which changes almost every day. It’s significant to watch these events closely to catch the right impulse in time.
How to trade after the release?
If the data is better than expected and it overweighs risk-off factors, AUD and NZD will gain.
There are several risk-off factors that can prevent AUD and NZD from rising, even if their reports are positive. The first one is the pessimistic outlook of the Fed’s Chairman Jerome Powell for the global economic recovery. He emphasized during his speech that the economy is still well below pre-crisis levels, even if there are some improvements. The US May jobs report and retail sales were better than expected. However the Fed’s chairman stays cautious. That’s why investors are concerned too. Moreover, the new coronavirus outbreak in China and resurgence of infections in Florida add more worries. Now it’s a good idea to check global coronavirus numbers. If demand for risk resumes, USD will fall and it will be enough to push AUD and NZD upward.
AUD/USD has set a strong bullish trend and has never crossed the support line. It’s headed towards the resistance at 0.7020 – the high of June 8. The move below 0.6850 may push the price lower to the next support at 200-day moving average at 0.6650.
NZD/USD is moving up to the resistance level at 0.6560. If the price falls below 0.6430, it may drop even deeper to the next support at 0.632 where is the 200-day moving average. Check out tomorrow the data from New Zealand and Australia!
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.