Crude Oil extends reversal from multi-day high on China demand woes, fears of higher Libyan output

On Monday, market activity is likely to be limited due to the conjunction of Japan's holiday and the pre-Federal Reserve blackout period. This could enable the US dollar to maintain its recovery from the recent multi-day low, a rebound fueled in part by positive US economic data.

This upward trend instills renewed optimism about potentially hawkish moves from the Federal Reserve. Nonetheless, underwhelming Chinese growth figures and the accompanying Sino-US headlines could exert downward pressure on the market sentiment. This development could negatively affect higher risk assets and commodities.

Its worth noting that the China news joins fears of higher Oil output from Libya, due to the restart of a major rig, exerting downside pressure on the Brent Oil and WTI crude oil prices. That said, Gold Price also remains pressured after reversing from the monthly high the previous day.

AUDUSD drops the most as Chinas softer GDP figures join comments from Aussie Treasurer suggesting economic woes for the Pacific major. On the other hand, GBPUSD and USDCAD appear mostly unchanged whereas USDCHF bucks the trend while ignoring the US Dollar rebound amid sluggish markets.

Somewhere, BTCUSD and ETHUSD struggle to defend the first daily gains in four as US Dollar remains dicey and the fears of crypto regulations loom.

Following are the latest moves of the key assets:

• Brent oil extends pullback from monthly high, down 0.85% intraday near $78.80 at the latest.

• Gold price also eases from the highest level in a month, mildly offered around $1,950 as we write.

• USD Index fades Fridays rebound from the lowest level since February 2022 but fails to gain downside momentum near 99.80 by the press time.

• Wall Street closed mixed and so did stocks in the Asia-Pacific zone. Even so, equities in Europe and UK edge lower by the press time.

• BTCUSD and ETHUSD print minor gains to around $30,300 and $1,930 as we write.