- Natural Gas Price remains sidelined after refreshing three-week low the previous day.
- IEA conveyed economic woes to cut down Oil demand forecasts, XNG/USD trails the move.
- Chatters about China fading economic recovery jostle with downbeat USD on Fed policy pivot concerns to test Natural Gas Price.
- Risk catalysts, US data eyed for clear XNG/USD directions.
Natural Gas Price (XNG/USD) seesaws around $2.55 after refreshing a three-week low amid mixed concerns about economic recovery and Oil market updates. That said, the downbeat energy forecasts from the US International Energy Agency (IEA) weigh on the XNG/USD price even as the US Dollar stays pressured.
On Thursday, the US IEA flagged fears of softer energy demand from China, one of the world’s biggest energy customers, while stating, “China's economic recovery losing steam after bounce earlier in the year.” The IEA also revised up 2024 demand forecasts by saying that a more robust global economic outlook next year and an expected increase in gasoil use in China accounted for the raised forecast.”
On the other hand, the downbeat US Dollar should have also put a floor under the XNG/USD price. That said, the US Dollar Index (DXY) licks its wounds near 99.65 after dropping to the lowest level since April 2022 the previous day, down 2.45% in a week so far.
In doing so, the US Dollar struggles to justify hawkish comments from Federal Reserve Governor Christopher Waller as the US inflation clues flag the nearness of the Fed’s policy pivot even if the July rate hike is almost given.
It’s worth noting that the cautious mood, as per the S&P500 Futures’ retreat from the yearly top, also prods the Natural Gas traders.
Furthermore, headlines from China suggest more stimulus from the dragon nation and challenge the intraday sellers of the Natural Gas of late.
Moving on, China headlines will entertain the XNG/USD traders ahead of the preliminary readings of July’s Michigan Consumer Sentiment Index, as well as the Five-Year Consumer Inflation Expectations.
Technical analysis
Despite the latest corrective bounce off the 50-DMA, around $2.53 by the press time, the Natural Gas Price remains on the sellers' radar as it confirmed the bearish Head-and-Shoulders (H&S) chart formation by breaking the $2.56 support the previous day.
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