West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $68.20 on Wednesday. The WTI price remains on the defensive amid a surprise climb in crude inventories and weak demand outlooks, particularly in China. However, the escalating geopolitical tensions in the Middle East might cap the downside for the WTI price. WTI prices edges lower after disappointing China's international trade data on Tuesday. China's exports rose 6.7% YoY in November, while Imports fell by 3.9% YoY during the same period. Both the readings came below the market consensus. Additionally, China...
The Australian Dollar (AUD) hovers against the US Dollar (USD) on Wednesday after experiencing losses in the previous session. The AUD/USD pair faced challenges, driven by the broadly stronger US dollar (USD). Traders now focus on the release of crucial US November Consumer Price Index (CPI) data, which are expected to be released later in the North American session. The US CPI inflation is estimated to rise to 2.7% YoY in November from 2.6% in October. Meanwhile, the core CPI, excluding Food & Energy, is expected to increase 3.3% YoY. Any indications of stalled progress could...
The dollar index held steady around 106.3 on Wednesday, after three straight days of gains, as investors braced for a crucial US inflation report that could have a significant impact on Federal Reserve policy. A higher-than-expected inflation reading could delay the Fed's plans to reduce borrowing costs, potentially supporting the US dollar. That said, markets are currently pricing in an 86% chance of a 25 basis point rate cut by the Fed later this month, although the outlook for 2025 remains highly uncertain. Traders are also eyeing interest rate decisions from the Bank of Canada and the...