The United States Energy Information Administration reported a natural gas storage increase of 46 billion cubic feet, which is higher than the expected 44 billion. This update, from July 11th, shows a rise in reserves for that time.

Currency Market Movement

Recently, the AUD/USD pair faced resistance near 0.6600 and fell closer to 0.6450. This drop is due to a stronger US Dollar and negative Australian labor market reports. Similarly, EUR/USD dropped to about 1.1550 after positive economic data from the US lifted the Dollar. Gold saw slight losses, trading around $3,340 per troy ounce. Its downward trend is influenced by a stronger Dollar and rising US yields. Meanwhile, XRP continued to rise, trading around $3.25 after recovering from a previous low of $2.80. China’s economy grew by 5.2% year-on-year in the second quarter, supported by exports and industrial output. However, concerns arose from larger-than-expected drops in fixed-asset investment and retail sales, along with falling property prices. Trading currencies involves risks. It’s important to assess your investment goals and risk tolerance. Seek objective financial advice if you’re considering foreign exchange trading.

Impact of Natural Gas Supply

The latest report shows a larger-than-expected natural gas supply build, putting continued pressure on prices. Total storage is now over 18% above the five-year average, indicating a comfortable supply as we head into the later summer months. This situation may encourage traders to consider bearish positions, as such large surpluses often limit price increases before winter demand begins. The Australian Dollar is likely to stay weak against the US Dollar, struggling below the 0.6600 level. Recent data shows Australia’s unemployment rate has risen to 4.1%, while the US labor market remains strong. This economic difference strengthens the Dollar and may present shorting opportunities in the AUD/USD pair, aiming for lower support levels. The Euro is also facing challenges due to positive economic signals from the US. Eurozone manufacturing PMI data still shows contraction, remaining below 50, highlighting the diverging economic paths of the two regions. This trend is expected to continue, providing traders a chance to capitalize on further declines in the Euro. Gold remains under pressure as the 10-year US Treasury yield stays above 4.3%, making non-yielding assets less appealing. Trading around $2,330 per troy ounce, gold’s downward path seems likely as long as the Dollar remains strong. Derivative traders might consider buying puts to hedge against or profit from a possible decline. The recent rally in the digital asset appears to have slowed down, with its price stabilizing around $0.48 instead of climbing higher. The overall sentiment in the cryptocurrency market has turned cautious, and ongoing legal uncertainties add to the risk for this asset. We recommend waiting for a clear breakout before making significant positions. China’s economic situation poses a serious risk for commodity markets, leading us to adopt a cautious outlook. Although the growth numbers look good, the weaknesses in fixed-asset investment and consumer spending raise red flags. This internal fragility supports a bearish view for currencies and assets tied closely to Chinese demand. Create your live VT Markets account and start trading now.

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