Natural Gas Price News: XNG/USD rebounds to $2.62 amid cautious optimism ahead of key data/events

• Natural Gas Price recovers from the lowest level in three weeks.
• Hopes of witnessing sooner end to rate hike trajectory jostled with downbeat PMIs to trigger XNG/USD rebound.
• US data, Jackson Hole speeches eyed for clear directions.

Natural Gas Price (XNG/USD) prints the first daily gains in three while bouncing off the lowest levels in three weeks, marked the previous day, amid the market’s consolidation ahead of the top-tier data/events on early Thursday. That said, the energy instrument clings to mild gains near $2.62 by the press time.

The quote dropped to the multi-day low despite a softer US Dollar as the downbeat prints of the global PMIs for August printed bleak economic scenarios and likely softer energy demand. On the same line could be the mixed concerns about the US-China ties, as well as the US weather conditions that previously favored the XNG/USD buyers.

It should be noted that the US Durable Goods Orders, Chicago Fed National Activity Index, Kansas Fed Manufacturing Activity and weekly Jobless Claims are the key data on the watch. Also, the weekly Natural Gas Storage Change from the US Energy Information Administration (EIA), expected -8.0B versus 35B prior, is on the calendar and prods the commodity buyers.

Above all, the cautious mood at the start of the two-day-long annual Jackson Hole Symposium allows the XNG/USD to pare weekly losses.

Against this backdrop, S&P500 Futures rose half a percent to 4,470 by the press time, after rising the most in a month the previous day, whereas the US 10-year Treasury bond yields seesaw around 4.20%, pausing a two-day losing streak from the highest level since 2007, following the biggest daily slump in three weeks. Furthermore, the US Dollar Index (DXY) remains sidelined around 103.40 after reversing from an 11-week high and challenges the XNG/USD buyers.

Natural Gas Price Technical Analysis

Natural Gas Price struggles to defend the corrective bounce off multi-day low after breaking an ascending trend line from early June the previous day, now immediate resistance around $2.65. That said, bearish MACD signals add strength to the downside bias surrounding the XNG/USD.

However, a convergence of the five-week-old rising trend line and the 100-DMA, around $2.54, acts as a tough nut to crack for Natural Gas sellers.

Meanwhile, a downward-sloping resistance line from August 10 and the 50-DMA, close to $2.67 and $2.70 in that order, act as additional upside filters for the XNG/USD, apart from the support-turned-resistance surrounding $2.65.

In a case where the Natural Gas Price remains firmer past $2.65, the previous monthly high of around $2.78 will be in the spotlight

Natural Gas Price: Daily chart

Trend: Bearish