Russian tensions rise and RBA becomes less patient
Oil => The commodity rises back over $100
Twitter => The stock jumps 28%
AUD/USD => The pair rises to 0.76
WTI Crude Oil rises on supply fears
Crude oil rallied 5% in the previous session after falling 13% across last week and trades back over $100 as the West plans more sanctions for Russia and after Saudi Arabia lifted selling prices.
As the number of civilian deaths keeps rising in Ukraine, pressure is mounting on the West to impose more severe sanctions, aiming at Russia’s energy sector. Supply fears keep prices elevated even after the US announced the release of 1 million barrels per day from strategic reserves.
Highlighting the upward pressure on prices, Saudi Aramco raised its official selling price in May.
Today, oil prices continue to rise, with attention turning to API inventory data due later. A large draw on reserves could unnerve the market and send prices higher.
Where next for Crude Oil
Crude Oil has traded within a triangle formation over the last two weeks, supported by the multi-month rising trendline support and a steeper two-week falling trendline resistance.
The price found support on the 50 SMA and rising trendline and rebounded higher. It is attempting to break out of the upper-end of the triangle, while the RSI is neutral, favoring neither a break out to the upside nor the downside.
However, buyers appear to be winning the battle, moving above 103.95, breaking out of the triangle’s upside, and heading towards 108.00, the March 30 high, before looking towards 116.19. Sellers will be looking for a move below 97.50 to create a lower low, while buyers
Twitter jumps 28%, here’s why.
Twitter surged over 28% in the previous session after Tesla CEO Elon Musk bought a 9.2% stake in the social media platform in a deal worth just shy of $3 million at Friday’s closing price.
Elon Musk is now not only one of Twitter’s most prominent personalities but is now also Twitter’s largest shareholder. The move came after Musk criticized Twitter last month for its policies on freedom of speech and hinted that he was considering creating a new social media platform.
The move could bring challenges to CEO Parag Agrawal, who only took over from Jack Dorsey in November. Investors are impressed, and the stock trades at its highest level since November 30. Elon Musk is already=y testing the water for an edit button.
AUD/USD jumps post RBA meeting
After the RBA monetary policy meeting, AUD/USD trades 1.5% higher at 76.00.
The central bank, as expected, kept interest rates on hold at 0.1%. However, the RBA dropped its pledge to be patient on inflation, prompting expectations that the central bank would hike interest rates sooner than later.
RBA Governor Philip Lowe sees a pick-up in inflation with an expected further rise. Domestic data has been improving, although he also highlighted the uncertainty stemming from the Ukraine crisis and developments in the global energy markets as concerns.
Looking ahead, the attention will turn toward US economic data with US ISM services data release, which is expected to rise in March.
| US factory orders Feb MoM
US ISM services March |
Actual: -0.5% (2%)
Expected: 58 (1.5) |
Previous: 1.5%
Previous: 56.5 |
Support can be found at 0.7515 (upper band of the falling channel) and 0.7460 (last week’s low).
Resistance for the pair can be seen at 0.7620 (June ’21 high) and 0.77 (round number).
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