FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
FxPro information and reviews
HFM information and reviews

China unrest as Covid lockdowns ramp up

28 November 2022

Oil prices have dropped to an 11-month low at the start of the week as protests escalate in China in response to the strict zero-COVID restrictions. More and more localized lockdowns have been imposed, and civil unrest has broken out. As COVID infections rise to daily record highs in China, the world’s largest oil importer, the demand outlook for crude oil has deteriorated. On the supply side, the December OPEC+ meeting is later this week and comes following a 2 million barrel per day production cut, which was announced in October.

Where might the oil price head to?

After hitting resistance at 92.34 in early November, the price of oil has rebounded lower. Oil has taken out the previous low of 7525 to fall to a new 11-month low. The RSI could support further downside while it remains out of oversold territory. Sellers could look to break below 73.15, the early December 2021 high, to bring 70.00 round number into target. A break below here opens the door to 66.15, the December ’21 low. Buyers could look for a more over 75.15 and 76.40, the September low, to mount a recovery towards the 80.00 round number.

BTC/USD falls in risk-off trade

BTC/USD is heading lower at the start of the week, slipping over 3% in risk-off trade after consolidating across the weekend. The risk-off mood comes as protests erupt across China due to the ramping up of unsustainable COVID restrictions. The hit-to-risk sentiment sees investors ditching riskier assets, which the safe haven USD rises. This latest move comes as the industry continues to watch the fallout from the FTX scandal. Bitcoin is attempting to stabilize around 15.5k to 17k. Where BTC/USD goes from here could depend on whether buyers manage to defend the 15.5k level, a break below here opens the door to 13.5k. Buyers will look for a rise over 16.8k to bring the 17.6k handle into the picture.

EUR/AUD heads higher after weak Australian retail sales

EUR/AUD is rising after Australian retail sales unexpectedly fall and amid the unrest in China, Australia’s largest trading partner. Retail sales fell for the first time this year, dropping by -0.2% as household incomes show signs of coming under pressure amid high inflation and rising interest rates. Expectations had been for a rise in sales by 0.5%. Resilient consumer spending had been one of the reasons that the RBA kept hiking rates aggressively. However, in the last RBA meeting, policymakers slowed the rate of hikes. The euro is rising against the weaker AUD, as attention turns to ECB’s Christine Lagarde, who is due to speak later. Investors will be listening for clues on the path of rate hikes amid growing speculation that the ECB could slow the pace of hikes in the December meeting.


Share: Tweet this or Share on Facebook


WN04 data: Oil and Gold price
WN04 data: Oil and Gold price

This preview of weekly data looks at USOIL and XAUUSD, where both commodities seem to pause their aggressive bullish rallies following the thinning trade volumes of the Chinese New Year...

26 Jan 2023

Gold trading in 2023: Is now a good time to invest?
Gold trading in 2023: Is now a good time to invest?

Are you thinking about investing in gold in 2023? With the increasing financial uncertainty around the world, many traders are looking to gold as a safe-haven asset...

26 Jan 2023

Stocks in a Rally!
Stocks in a Rally!

USDIndex settled at 101.50, Wall Street rallied on the back of tech amid ongoing hopes for a downshift in Fed rate hikes amid a potential moderation in inflation this week...

25 Jan 2023

USD Index remains under pressure near 102.00
USD Index remains under pressure near 102.00

The index kept the consolidation well in place near 102.00. The resumption of the risk-on mood weighs on the dollar. Flash Manufacturing/Services PMIs come next in the US docket...

24 Jan 2023

USD Index remains under pressure below the 102.00 mark
USD Index remains under pressure below the 102.00 mark

The US Dollar started the new week under modest bearish pressure and the US Dollar Index declined below 102.00 during the Asian trading hours on Monday...

23 Jan 2023

Ford shares and trucks are getting traction in 2023
Ford shares and trucks are getting traction in 2023

In just two weeks, Ford shares (F) soared from $10.86 (USD) to $13.42. Traders are wondering what’s causing the surge and whether it will continue throughout 2023...

23 Jan 2023

Editors' Picks

FXCM information and reviews
ActivTrades information and reviews
RoboForex information and reviews
MultiBank Group information and reviews
MultiBank Group
Libertex information and reviews
Vantage information and reviews

© 2006-2023 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.