WTI Crude Oil Bounces Off Session Lows Amid Strong US Economic Indicators
WTI crude oil prices have bounced back from session lows of around $88.69 to trade at approximately $90.89 after the latest US data release. The price action is occurring within a descending channel formation on the 60-minute chart.
The light crude oil price continues to trade above the 100-hour moving average line, avoiding oversold territory on the 14-hour RSI. This suggests that bulls are looking to extend the current rebound towards $92.97 or higher, up to $95.45.
From a fundamental perspective, the recent US nonfarm payrolls for August increased to 162k, beating the forecast of 56k. The unemployment rate remained unchanged at 4.1%, in line with expectations. The average hourly wage growth for the period also matched the (MoM) forecast of 0.3%, while the (YoY) equivalent outperformed the estimate of 3%, with a change of 3.1%.
On Thursday, the US initial jobless claims for last week came in at 206k, missing the forecast claim count of 205k. The ISM Services PMI for August outshone the forecast of 54.3, with a reading of 55.4, up from the previous month's equivalent of 54.1.