|Day's range||38.54 - 40.77|
The next major move in the AUD/USD will be determined by how investors handle the two 50% levels at .6921 and .6889.
This trio of energy names got a big daily boost from oil prices, but that's just part of a much larger story here.
Demand and Supply in 2019 were records
Oil prices fell on Thursday as COVID-19 cases continued to spike in the U.S., which the IEA highlighted as a major threat to oil markets in today’s report, but prices were quick to return to the $40 mark on Friday.
We’re going to be watching a minor pivot at 25787 into the close on Friday.
Stock markets rallied during the week, with the S&P; 500 being no exception. We broke above the top of a couple of shooting stars which is a bullish sign.
Crude oil markets had a bouncy week, but at the end of the session on Friday it looks as if we have stabilized. That is a good sign.
S&P; 500 initially pulled back on Friday again, but then turned around to show signs of life again. This is a market that continues to show extreme resiliency.
Crude oil markets initially dipped on Friday but turned around to show signs of resiliency yet again. They have more of an upward bias than anything else.
Silver markets have continued to hover at a major level, in the form of the $19 level during the trading session on Friday.
Natural gas markets initially dipped a below the 50 day EMA on Friday but turned around. This is a market that looks like it is trying to continue going higher.
Gold markets struggled to follow through during the trading session on Friday after pulling back on Thursday.
Oil rebounds back to the key $40 level after Gilead Sciences reports promising data on COVID-19 drug.
British pound has had a very bullish week, as we continue to see a rally. Every time it looks as if it is going to fall, buyer step in to pick up yet again.
The Euro initially rally during the week, pulled back from the 200 week EMA, and then rallied again to close out a choppy week. This is normal for this pair.
The global energy agency that rarely helps the positive case in oil has given a friendly boost to those long crude, just as the week comes to an end. Crude prices jumped more than 1% on Friday after the International Energy Agency bumped up its 2020 forecast for global oil demand, lifting a market that took its worst hammering in six weeks in the previous session. The IEA’s outlook on oil has typically been dour over the past few years, putting it at odds with the Saudi-dominated OPEC — or Organization of the Petroleum Exporting Countries — whose members are determined to keep crude prices supported under any condition.
Silver did not manage to get above $19.00 but maintains solid upside momentum.
The British pound initially fell a bit on Friday but continues to find support as we broke back above the 200 day EMA by the time New York got online.
The Australian dollar initially sold off on Friday but found buyers two show signs of resiliency yet again. We have a massive amount of resistance just above.
(Bloomberg) -- The International Energy Agency bolstered its outlook for global oil demand, but warned that the recovery could be derailed by the resurgence of coronavirus.A collapse in fuel consumption during the second quarter was slightly less severe than previously estimated, and demand should rebound sharply over the next three months as economic activity resumes, the agency said in a monthly report. Bloated inventories will diminish as OPEC and its allies persevere with vast production cuts, it predicted.Yet a flare-up of the virus, which is raging across several U.S. states and re-emerging in Asia, is “casting a shadow over the outlook,” the IEA cautioned. Oil fell 1.4% to $39.06 a barrel at 7:20 a.m. in New York, heading for a weekly loss. “The large, and in some countries, accelerating number of Covid-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside,” the IEA said. The Paris-based agency advises major economies on energy policy.International oil prices have more than doubled from the lows reached in late April, trading just under $42 a barrel in London on Friday, as fuel use picks up and crude supplies are reined in.The shockwaves of the coronavirus crisis are, however, still being felt.Global oil demand is on track to slump by 7.9 million barrels a day, or about 8%, this year as lockdowns and the economic contraction reduce the need for products like jet fuel and gasoline. While still a record loss, it’s not as bad as anticipated last month, when the agency projected a drop of 8.3 million barrels a day.The IEA boosted its demand assessment for the second quarter, the height of the crisis, by 1.5 million barrels a day –- though that still equates to a 17% drop in the period from the same point in 2019.Going into the third quarter, worldwide consumption should now pick up by about 14% from the previous three-month period, with the revival in economic activity, to average 94.3 million barrels a day, according to the agency.The demand rebound, coupled with strict output cutbacks by the Organization of Petroleum Exporting Countries and its allies alongside losses elsewhere, should temper some of the enormous inventory glut that piled up during the first half of the year.Global oil supply dropped to a nine-year low of 86.9 million barrels a day last month as OPEC+ delivered all the curbs it promised, while investment cuts and reduced drilling hit output from the U.S. and Canada.The 23-nation OPEC+ alliance, led by Saudi Arabia and Russia, has pledged unprecedented output reductions amounting to almost 10% of world supplies in a bid to rebalance markets and shore up prices. The coalition cut even more than promised in June as the Saudis made additional reductions to speed up the recovery process, the IEA said.(Updates with oil price in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The direction of the August WTI crude oil market on Friday is likely to be determined by trader reaction to the 50% level at $39.08.
The heyday of America’s mighty oil and gas industry may be passing. This week three huge pipeline projects, whose combined length would stretch from New York to San Diego, were ditched. Further oil and gas output growth in the world’s most prolific energy market depends on new infrastructure.