Baxia Markets
September 05, 2023

Strong Dollar and High Gas Inventories Left a Bearish Gap

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The Natural Gas Price (XNG/USD) saw a significant drop on Monday, marking its largest daily loss in three weeks, partly due to a stronger US Dollar and rising Gas inventories, which reached 132 billion cubic feet, exceeding the ten-year average on August 25. Additionally, a 4.0% increase in Gas output was reported, despite a decrease in the number of gas-drilling rigs from 159 in April 2023 to an average of 121 in August 2023.


XNG/USD Technical

XNG/USD traders are closely monitoring the US Dollar's performance, especially as US-China tensions escalate, and China considers further economic privatization, according to President Xi Jinping's recent remarks.

Strong Dollar and High Gas Inventories Left a Bearish Gap

From a technical perspective, XNG/USD broke below a key support zone at 2.793 - 2.838 (highlighted in a blue rectangle), indicating a strong bearish trend. The rectangle in red highlights the resistance zone or the recent swing high at 2.918-2.951. The MACD signal line is below the 0 level, confirming the bearish sentiment.

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