Russian sanctions intensify, US bans Russian oil
Oil => The commodity rises towards $130
Apple => The stock trades 3% lower this week
AUD/USD => The pair rises towards 0.73
Oil extends gains on US oil ban
Oil rose 3.6% yesterday, and is on the rise again today, marking its fourth straight day of gains.
Oil already trades up 8% this week after jumping 26% last week. The latest push higher comes after the Biden administration announced a unilateral American ban on Russian oil and other energy products.
This adds to a raft of global sanctions already imposed on Russia following its invasion of Ukraine. Russian President Putin promised retaliation.
Europe is still not able to support such a ban as it gets around 40% of its gas from Russia. That said, Europe is bracing itself for Russia to follow through with threats of cutting gas supply in retaliation for the US ban on Russian fuels.
EIA data is due later and comes after a surprise 2.8 million barrel rise in crude oil stockpiles.
Where next for WTI oil price?
WTI oil prices rose to a fresh 14 year high of 129.40 on Tuesday as it extended its recovery above $115 towards a $148, 2008 high.
The RSI has extended into overbought territory, suggesting that there could be a pullback on the cards but that it is just about the only bearish signal on the chart. It would take a move below $115 2011 high to negate the uptrend, opening the door to the $107 region 2014 high.
On the upside, some resistance could be encountered around $135, the May ’08 high ahead of $143, the June ‘8 high, and $148.
Apple falls after the product event.
Apple fell 1% yesterday and is set to open lower again today after its product event of the year, which saw several key announcements, including a new budget iPhone as it looks to take on the lower end of the market.
The budget iPhone will have a 5G and the Apple A15 Bionic chip, making it the fastest, most powerful phone at its price point. It is more expensive than the previous Apple budget phone, which could dampen demand slightly.
Apple will hope that the new iPhone will spur a super cycle in iPhone sales similar to the iPhone 12. The share price has been steadily falling after reaching an all-time high of $180 at the start of the year.
Apple currently trades at 157.
AUD/USD rises on improved sentiment
AUD/USD fell against its U.S dollar counterpart yesterday for a second straight session in choppy trade.
On the one hand, the US ban on Russian energy hit risk sentiment; on the other, Ukraine no longer insisting on joining NATO is helping lift risk sentiment.
Even so, US equity markets ended lower again on Tuesday, and riskier currencies such as the Aussie dollar also finished in the red. Risk plays overshadowed rising metal prices, as Gold closed above $2000 for the first time in 19 months.
Overnight, Australian consumer confidence was much weaker than expected in March, as the Russian invasion began.
Today the pair is edging higher as risk sentiment improves ahead of US economic data. The US JOLTS job openings are expected to show that the US jobs market remains tight, with almost 11 million vacancies.
|Aus. Consumer confidence
US JOLTS job openings
|Actual: -4.4% (3.1%)
Expected: 10.925M (1.9%)
Support can be found at 0.7235 (100 sma) and 0.72 (round number
Resistance for the pair can be seen at 0.7380 (last week’s high) and 0.7440 (yesterday’s high).
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