Natural Gas Price News: XNG/USD recovers to $2.75 amid market consolidation

• Natural Gas Price prints the first daily gains in four while bouncing off fortnight low.
• US Dollar bulls take a breather amid a light calendar in Asia.
• Upbeat US data, hawkish Fed talks and fears of China economic slowdown weigh on energy prices.
• US economic calendar, EIA Natural Gas Storage Change eyed for clear XNG/USD directions.

Natural Gas Price (XNG/USD) picks up bids to $2.75 early Thursday morning in Asia as energy traders await more clues to defend the previous losses, posting a corrective bounce off the short-term key moving average of late.

That said, a light calendar in Asia and a lack of major news allow the US Dollar bulls to take a breather. Also likely to have triggered the XNG/USD recovery is the cautious mood ahead of Thursday’s official weekly Natural Gas storage change data from the US Energy Information Administration (EIA).

Above all, fears of witnessing a softer economic transition in China, one of the world’s biggest commodity users, as well as receding supply-crunch fears of the energy instruments, seem to weigh on the Natural Gas Price.

Furthermore, the strong US Dollar has inverse ties with the XNG/USD and keeps the commodity sellers hopeful of late. It should be observed that the US Dollar Index (DXY) rose to a fresh high since March 15 on Wednesday while flashing a figure close to the 105.00 threshold before retreating to 104.85 afterward, around 104.90 by the press time. Even so, the Greenback’s gauge versus the six major currencies remains on the way to posting an eighth consecutive weekly gain amid economic optimism.

While trading the key catalysts, upbeat US activity and output data join the hawkish Federal Reserve (Fed) signals to defend the rate hikes and gain major attention. On the same line could be the Fed’s Beige Book suggesting a soft landing in the US and China woes that favor the Greenback’s haven demand.

Amid these plays, S&P 500 Futures remain depressed after Wall Street benchmarks closed in the red for the second consecutive day. That said, the US 10-year Treasury bond yields rose to a two-week high of around 4.30% and the two-year refreshed weekly top above 5.0%, which in turn offered notable strength to the US Dollar.

Looking ahead, multiple Fed policymakers are scheduled for speeches and can direct the XNG/USD prices. On the same line could be the second-tier clues of the US employment and activity numbers, as well as the weekly Natural Gas inventories.

Technical analysis

Natural Gas Price (XNG/USD) bounces off the 50-DMA support of around $2.71 to aim for a $2.80 upside hurdle. However, the 200-DMA level of near $2.97 and the three-month-old rising support line surrounding $2.69 appear more important levels to watch for clear directions of the XNG/USD price.