Crude oil fell
Oil prices declined in Asia on Thursday after data from the US Energy Department showed a decrease in the stock was weaker than expected and the market players viewed comments from Fed as negative for the outlook for future demand. The Fed chief also takes into account the impact that occurs from the oil price policy.
On the New York Mercantile Exchange, crude oil WTI for July delivery fell 1.10% to $ 47.48 per barrel.
On the Intercontinental Exchange (ICE), Brent North Sea crude for August delivery wavered between $ 48.68 and $ 49.80 per barrel, before settling at $ 48.89, down 0.92, or 1.85% on the day.
EIA earlier in the day said in its Weekly Petroleum Status Report that the US commercial crude oil inventories declined 0.9 million barrels for the week ending on June 10 at 531 million barrels, US crude oil inventories are at historically high levels for the first time this year.
Overnight, US crude oil futures slumped to a 3-week lows on Wednesday after the Energy Information Administration released data stockpile worse than expected last week.
Meanwhile, domestic crude oil production fell sharply last week by 29,000 barrels per day, a total of 8.716 million barrels per day. It came one week after crude oil production rose modestly to 10,000 barrels per day to 8.745 million, stop losing streak this 4bulan. Over the past year, crude oil production in the US has fallen by almost 1 million barrels per day from the level of June.
Technically
Resistance: 47.78 48.16 48.59 High / Low: 48.76 / 47.30
Support: 47.30 46.75 46.24 Running Price: 47.40
Comment: For intraday trade today suggest Sell at 47.30; stop loss at 47.80; target at 46.80.
Yen began to strengthen in trade
The yen rose in early Asian trade on Thursday, ahead of a policy review of the Bank of Japan, while the NZD strengthened after the GDP data was better than expected.
USD / JPY was changing hands at 105.82, down 0.17%, while the NZD / USD rising 0.64% 0.7079. AUD / USD was trading at 0.7415, up 0.09%.
In New Zealand, the first quarter GDP rose 0.7% quarter-on-quarter, compared with the expected rise of 0.5%, while the annual rate benefit of 2.8%, compared with 2.6% expected.
Looking ahead in Australia, the rate of employment change for May are expected to show 15,000 jobs were added to the unemployment rate of 5.7%.
Going forward, the Bank of Japan will release its latest interest rate decision when the market looking for clarity on the scope for interest rate to step down further.
On Wednesday afternoon, the Federal Open Market (FOMC), as expected, left its benchmark federal target various Funds Rate remains at levels between 0.25 and 0.50%. This marks the fourth consecutive meeting of the FOMC rate remained stable at their current level. The last time the rate hike in December.
The US dollar index, which measures the dollar’s strength compared with six other major currencies, last quoted at 94.67. Overnight, the dollar weakened against other major currencies on Wednesday after the Fed announcement, despite the release of upbeat US data.
The US Commerce Department said producer prices ro se 0.4% last month, against expectations for a rise of 0.1% to remain at levels seen in April.
The producer price index fell 0.1% from a year earlier, in line with expectations.
Core producer prices, the exclusion of producers of food and energy, also rose 0.3% last month, above forecasts for a rise of 0.1%.
Separately, the New York Federal Reserve said the Empire State manufacturing index rose to 6.01 in June from -9.02 the previous month’s forecast. Analysts had expected the index to improve to -4.00 this month.
On a more positive note, another report showed that US industrial production fell 0.4% last month, worse than expectations for a 0.2% decline.
Technically
Resistance: 106.12 106.25 106.43 High / Low: 106.32 / 105.40
Support: Running 105.35 105.47 105.56 Price: 105.67
Comment: For intraday trade today suggest sell at 105.65; stop loss at Sell 105.90; target at the level of 105.40.
Wall Street negatively affected
Stocks ended lower in late trading Wednesday in the United States, after the US Federal Reserve meeting which showed no increase in interest rates and weakening in the crude oil sector.
The Dow Jones Industrial Average and S & P 500 posted five straight days of their first decline since the end of February 11. The Nasdaq composite had five consecutive days the first decline since the end of April.
The Dow Jones Industrial Average closed down 34.65 points, or 0.20 percent, at 17,640.17, with the highest drop in shares of Intel and Home Depot shares rose the most.
The S & P 500 closed down 3.82 points, or 0.18 percent, at 2,071.50, with utilities sectors led the six sectors were lower and the materials sector rose the highest.
The Nasdaq index closed down 8.62 points, or 0.18 percent, at 4,834.93.
Treasury yields declined after the release of the statement, with the 2-year yield fell sharply closer to 0.67 percent, the lowest since mid-February, and the 10-year yield near 1.58 percent. Earlier in the day, yield of 2 year reached 0.746 percent, the highest since June 10.
The US dollar index last approximately one third percent lower, with the euro near $ 1.126 and approximately ¥ 105.9 yen against the greenback. Sterling was near $ 1.42.
Materials sector led the S & P 500 index rose, with the largest utilities lagged. Financial Sector stick profits, while consumer discretionary was among the rose with the S & P Retail ETF (XRT) was up 1.2 percent.
“I do not think this is a good day at all for the credibility of the Fed and it was not a good day at all for them generate confidence for monetary policy,” said Ward McCarthy, chief financial economist at Jefferies. “The impression they make is that monetary policy does not have certainty when it will happen. Obscurity was driven by a dual mandate and decision making just spontaneous. ”
The US Federal Reserve kept interest rates unchanged at its June meeting. Six members projecting only one hike this year, despite expectations of a media remain hopeful occurred two hikes this year.
Technically
Resistance: 17591 17737 17 763 High / Low: 17762/17532
Support: 17544 17530 17 458 Running Price: 17 559
Comment: For intraday trade today suggest Sell at 17540; stop loss at 17600; target at the level of 17460.
