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It’s a busier day on the economic data front, which will influence. Updates on COVID-19, however, will remain the key driver.
Riskier assets find support early in the week, but downside risks remain as the spread of the coronavirus continues and central banks signal more easing.
The Australian dollar has pulled back a bit during the trading session on Wednesday, only to turn around and rally towards the 0.62 level again. If we can break above this area rather handily, that should send the Aussie much higher. The 61.8% Fibonacci retracement level will be needed to be dealt with though.
The AUD/USD is currently sitting inside a triangle formed by a pair of Gann angles and a retracement zone. This indicates investor indecision and impending volatility. This is a breakout formation so start preparing for an acceleration.
The Australian dollar pulled back slightly during the trading session on Tuesday but found enough buyers to slam into the 0.62 level at the beginning of the US session. This is an area that should offer a significant amount of resistance, so paying attention to this level is worthwhile.
Today’s negative reports had little influence on the Australian and New Zealand Dollars since they were already priced in. Generally speaking, the macro data dating back to February and March is of little relevance at this time.
It’s another positive start to the day for the bulls, with the latest COVID-19 numbers providing further evidence of containment…
At 3:10 AM ET (0710 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six other currencies, stood at 100.235, down 0.5%, with the loonie, Aussie and kiwi all rising over 1%. GBP/USD gained 0.7% to 1.2316 even as Prime Minister Boris Johnson was moved into intensive care overnight due to his worsening COVID-19 symptoms. In New York, the epicenter of the outbreak in the U.S., Governor Andrew Cuomo said Monday that the state’s death rate has been ‘effectively flat for the last two days.’
Based on the early price action and the current price at .6050, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to the uptrending Gann angle at .5990. This angle provided support earlier in the session.
Given the massive fiscal and policy moves by their respective governments and central banks , there is likely to be enough stimulus in the system when the coronavirus pandemic ends, but no officials are able to tell businesses when that will be.
The rout in the financial markets and near-certain global recession caused by the coronavirus pandemic, fueled a run on demand for the highly liquid U.S. Dollar.
While it is a shortened week, with economic data on the lighter side, there is still plenty for the markets to focus on and OPEC and COVID-19 in particular.
The Australian dollar has initially tried to rally during the week but then broke down again as the 0.60 level looks very likely to act as a bit of a magnet for price.
The Australian dollar initially tried to rally during the trading session on Friday, but then broke towards the crucial 0.60 level. At this point in time, I believe that the market is going to continue to see the Australian dollar asked questions of the global economy.
Unfortunately for some shareholders, the Armstrong World Industries (NYSE:AWI) share price has dived 34% in the last...
(Bloomberg) -- Liquefied natural gas traders are following the latest trend in the oil market by storing huge amounts of the commodity on tankers, hoping prices will rise before the ship docks.But while crude can sit for months or even years in a tank, super-chilled LNG tends to evaporate even in the specialized vessels that handle it. That limits the amount of time “floating storage” is feasible.“Keeping gas frozen is extremely expensive because of the energy cost to maintain the ultra low minus-265-degree Fahrenheit temperature,” said Francisco Blanch, head of global commodities and derivative research for Bank of America Corp. in New York.The number of vessels used for floating storage was at 17 late last month, but has now eased to 13 after some unloaded their cargoes in India, according to data intelligence company Kpler. Three vessels have been idle for more than 10 days, Kyriakos Mezopoulos, director for LNG at Affinity, said in a note.More ships acting like storage tanks might also be a sign the LNG industry is poised to cut production. They’re reacting to a crash in prices as demand slowed, the result of two warm winters in a row and the coronavirus, which has shut huge parts of the global economy.U.S. LNG producer Cheniere Energy Inc. is already sourcing cargoes in Europe, with some traders and analysts speculating that this could be ahead of temporary production cuts.Spot LNG in Asia, the biggest consuming region, slumped to a record this week, and prices in Europe are also testing all-time lows. And unlike in oil, where markets indicate a rebound in prices in the months ahead, a surge in forward rates for LNG is too far off to matter.“We clearly see floating storage as a safety valve in the next couple of weeks and even in the next couple of months,” Jefferson Clarke, managing director for LNG at shipbroker Poten & Partners Inc, said at the webinar.In the crude oil market, plunging prices triggered a huge contango, where traders anticipate gains in future months and have an incentive to put the commodity into storage for months or years. They’ve hired tankers because storage sites on land are almost full.Oil Tanker Rates In Prolonged Rally as Excess Oil Seeks StorageThe dynamics are different in the gas industry, where gas storage sites on land that should be near empty still have fuel from last year. Also, the “boil-off” rate is a factor for LNG. Between 0.07% to 0.15% on average evaporates from LNG tankers per day for the majority of the global fleet. That means over a 75 day voyage, about 5% to 11% of the original cargo could be lost.Last fall, some traders loaded cargoes at low prices in August and discharged in early November when rates were rising. A typical journey from Qatar to the U.K. via Suez Canal, for example, takes about two weeks.While new vessels have better technology that limits the evaporation rate -- Flex LNG Ltd. has three ships for delivery later this year with a boil-off of about 0.035% - the difficulty containing the gas over long periods means using tankers as storage has a physical limit.“Floating storage is less about stockpiling, but more about slow-steaming until hopefully the rates pick up,” Iain Ross, chief executive officer of shipowner Golar LNG Ltd., said at the webinar organized by Capital Link Inc. and Citigroup Inc.While benchmark Asian LNG has lost about half its value this year, the storage trade is a bright spot for vessel owners. They can charge more than 40% more per day for a typical tanker in the Atlantic than at the same time a year ago, according to data from shipbroker Fearnleys A/S.Unusual TrendThe latest trend is unusual for this time of year, said Oystein Kalleklev, chief executive officer of Flex LNG. The company now has six vessels that it rents out. Unlike oil, LNG demand is largely seasonal, with a peak in winter when heating is in demand and another smaller lift in the summer for cooling.More floating storage may appear in September and October, when tanks on land are full and winter chills have yet to arrive, while price bottom out right before seasonal advances. Demand for vessels later this year is already rising, said Mark Kremin, CEO of shipowner Teekay Gas Group Ltd.Vessels with a very low boil-off make them “perfect” for floating storage play in the second half of the year, and Flex has fixed one of its upcoming vessels with trading house Gunvor Group Ltd., Kalleklev said on Friday.In part, floating storage in LNG now is a result of quarantines, Kalleklev and his peer from Hoegh LNG Holdings Ltd., Sveinung Stohle, said in interviews. Other reasons are cargo deferrals and diversions, as the virus hit demand and delayed unloading, the shipping executives said at the webinar.Loadings at plants have also slowed because global inventories are so full, Kalleklev said. Also, as the covid-19 situation eased in China and South Korea, ships are sailing from Europe to Asia, naturally extending voyages and shrinking availability of vessels in the Atlantic, he said.Indian buyers calling force majuere on cargoes last week has meant volumes needed to find other homes in an oversupplied market, so this involuntary floating storage came amid what looks like distressed cargoes, said Trevor Sikorski, an analyst at Energy Aspects Ltd.“We will see increased inefficiencies with regards to discharge and possible ships having to wait 14 days from loading to discharge,” Kalleklev said in an emailed response to questions.(Updates with boil-off rate for new Flex LNG vessels, Gunvor charter in the 17th and analyst from comment in penultimate graph.)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.
Based on the early price action and the current price at .6072, the direction of the AUD/USD the rest of the session on Friday is likely to be determined by trader reaction to the resistance cluster at .6093 to .6098.