Market News

Oil Market Buoyed by Strong Caixin Services PMI Performance

Oil Caixin Services PMI

Oil demand rises as Caixin Services PMI accelerates—key events, including the ADP report and Powell’s speech, impact currencies.

The latest data from the Caixin Services PMI revealed a notable uptick in services activity in March, signaling a robust economic quarter for China. The PMI reading of 52.7 surpassed market expectations, indicating accelerated growth as new business surged at the fastest rate this year. Additionally, business confidence improved, reflecting optimism among service providers.

Expectations anticipate that this acceleration in economic activity in the world’s third-largest economy will sustain higher demand for crude oil. WTI oil prices were trading around $85.50 per barrel during the Asia session, supported by positive economic indicators from China.

Looking ahead to the Europe and US sessions, market participants are eyeing key events that could impact trading dynamics:

ADP Employment Report: Market analysts anticipate a slight increase in job growth for March, with a projected figure of 148K, compared to the previous month’s reading of 140K. Any deviation from these estimates could influence the performance of the US dollar.

ISM Services PMI: Following a solid rebound in the manufacturing sector, analysts expect services activity to expand for the 15th consecutive month. Investors will also closely monitor the price component for signs of inflationary pressures.

Fed Chair Powell Speaks: Federal Reserve Chairman Jerome Powell’s remarks at Stanford’s Business, Government, and Society Forum could inject volatility into the markets, particularly towards the end of the US session.

Oil Market Buoyed by Strong Caixin Services PMI Performance

In the currency markets

Dollar Index (DXY): The dollar’s performance will likely be influenced by the ADP employment report and Powell’s speech, with a weak bearish bias anticipated.

Gold (XAU): During US trading hours, gold prices may experience volatility, influenced by the ADP report, ISM Services PMI, and Powell’s speech. Observers note a weak bullish bias.

Australian Dollar (AUD): Despite the absence of significant news events today, the AUD is encountering critical support and resistance levels at 0.6480 and 0.6530, respectively. Analysts anticipate a weak bullish bias.

Kiwi Dollar (NZD): The NZD may experience fluctuations, with key support and resistance levels at 0.5940 and 0.5990, respectively. We observe a weak bearish bias.

Japanese Yen (JPY): We anticipate USD/JPY hovering around the 151.50 zone, with the 152 level posing a magnificent barrier—observance of a weak bullish bias.

Euro (EUR): Market analysts anticipate that the Eurozone’s flash CPI reading will influence the EUR’s performance, with expectations leaning towards a weak bullish bias.

Swiss Franc (CHF): The USD/CHF pair might stay elevated, with the 0.9150 level as a significant resistance barrier. We observe a weak bullish bias.

Pound (GBP): Positive economic indicators may continue to support GBP’s recent uptrend, with analysts anticipating a weak bullish bias.

Canadian Dollar (CAD): Rising crude oil prices may strengthen CAD, potentially leading to a break below recent support levels for USD/CAD. Observers note a weak bullish bias.

In the oil market

EIA Crude Oil Inventories: Expectations of a higher-than-expected drawdown in inventories could further support oil prices, which touched $85.80 per barrel during the US session. Consequently, there is a weak bearish bias observance for the next 24 hours.

Stay Updated with the Latest Market News. Visit our YouTube Channel for the Latest Forex Analysis.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Our Newsletter

Subscribe to ForexPropNews Trading Newsletters

Receive the best-curated content by our editors for the week ahead.

Mini Charts

Fidelcrest video review

Play Video

Related Articles

Gold Near New High: Israeli-Iran Conflict Sparks Rally

Gold prices surged on news of an Israeli attack on Iran, nearing...

Global Markets on Edge: Japan’s CPI and Geopolitical Tensions

Japan's National Core CPI rose 2.6% YoY, slightly below forecasts, influencing global...

Asia Watch: Dollar Rally, Geopolitical Tensions Impact Trading Sentiment

Amid lower US unemployment claims, the dollar surged while escalating geopolitical tensions...

Market Focus: Europe and Asia React to Economic Data

In Asia, the Australian labor report weakened the AUD; USD awaits US...

Featured educational content

EXPLORE MORE

Featured educational content

New to Forex? Learn to Read Charts Like a Pro

Dive into forex trading basics: chart reading, candlesticks, technical indicators, timeframes, currency pairs. Start your journey to trading success today!

Video: How I Re-Programmed My Mind to be a Consistent Trader (Thanks to The Wolf of Wall Street)

How I Re-Programmed My Mind to be a Killer Trader (Thanks to The Wolf of Wall Street)

Video: This Invisible Trading Indicator Tells you What Day Trade (Not Just Price)

This Invisible Trading Indicator Tells you WHEN to Trade (Not Just Where)

Technical Analysis: Chart Patterns and Indicators for Profitable Investments

Navigate stocks with confidence using chart patterns like Head and Shoulders, indicators such as MACD, and tools like trendlines. Master technical analysis for...

Latest News

Gold Near New High
Market News

Gold Near New High: Israeli-Iran Conflict Sparks Rally

Gold prices surged on news of an Israeli attack on Iran, nearing an all-time high, while FX markets reflected immediate safety concerns.

Global markets CPI geopolitical tensions
Market News

Global Markets on Edge: Japan’s CPI and Geopolitical Tensions

Japan's National Core CPI rose 2.6% YoY, slightly below forecasts, influencing global markets amid rising geopolitical tensions and central bank actions.

Copyright © 2023 Forex Prop News. All Rights Reserved.