Natural Gas Price News: XNG/USD recovery looks to regain $2.30 amid cautious optimism, EIA inventories eyed

Natural Gas (XNG/USD) picks up bids to renew its intraday high around $2.28 as it licks the previous day’s wounds amid mildly positive market sentiment during early Thursday. With this, the energy instrument teases buyers ahead of the weekly Natural Gas inventory data after posting the first daily loss on Wednesday.

The risk profile remains mildly positive and puts a floor under the XNG/USD price as softer US and China inflation data weighs on the hawkish central bank bets. Also supporting the cautious optimism are the US policymakers’ preparations to avoid debt ceiling expiry despite failing in the initial attempt. Furthermore, expectations of the US-China top-tier policymakers’ meeting also underpin the slightly upbeat sentiment.

While portraying the mood, the S&P 500 Futures print mild gains and the US Treasury bond yields extend the previous day’s downbeat performance. However, the US Dollar Index (DXY) recovers after snapping a two-day downtrend.

That said, China’s headline Consumer Price Index (CPI) eases to 0.1% YoY from 0.7% prior, versus 0.3% expected, while the Producer Price Index (PPI) slides to -3.6% YoY compared to -3.2% market consensus and -2.5% previous readings.

On the other hand, US Consumer Price Index (CPI) eased to 4.9% YoY for April versus market expectations of reprinting the 5.0% inflation mark, marking the first below 5.0% print in two years. The MoM figures, however, matched the upbeat 0.4% forecasts compared to 0.1% previous readings.

To sum up, the Natural Gas Price remains mildly bid amid mixed catalysts, as well as a cautious mood ahead of today’s US Producer Price Index (PPI) for April, expected to ease to 2.4% YoY. Additionally important is the Energy Information Administration’s (EIA) weekly Natural Gas Storage Change, expected 52B versus 54B prior.

Technical analysis

Repeated U-turns from a downward-sloping resistance line from the mid-March, around $2.38 by the press time, keep the Natural Gas sellers hopeful of revisiting the yearly low of near $2.11.