FxWirePro: Norwegian Krone hovers towards 1-1/2 week low as oil slumps on Saudi price cuts
The Norwegian Krone declined, hoveing towards a 1-1/2 week trough hit in the prior session, weighed down by a plunge in oil prices. Crude oil prices declined, hitting their lowest since July, after Saudi Arabia made the …
The Norwegian Krone declined, hoveing towards a 1-1/2 week trough hit in the prior session, weighed down by a plunge in oil prices.
Crude oil prices declined, hitting their lowest since July, after Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months.
Oil exporter Saudi Arabia cut the October official selling price for Arab Light crude it sells to Asia by the biggest margin since May.
International benchmark Brent crude was trading 0.7 percent down at $42.04 per barrel by 0931 GMT, having hit a low of $41.54 earlier, its lowest since July 30. U.S. West Texas Intermediate was trading 0.8 percent lower at $39.10 a barrel, after falling as low as $38.58 earlier, its lowest since July 10.
Investors seem to have ignored Norway's upbeat economic data showing industrial production rose 7.4 percent year-on-year in July, the most since March, surging from a 3.1 percent rise in the previous month.
Meanwhile separate data showed Norway's manufacturing production decreased 6.10 percent in July over the same month in the previous year.
USD/NOK trades 0.4 percent higher at 8.9330, having touched a high of 9.0044 the prior session, its highest since August 25.
On Friday, the pair rose to an over 1-week peak, but retraced to close 0.1 percent lower at 8.8947.
Immediate resistance is located at 8.9789, close above could take it till 9.0022.
On the downside, support is around 8.8582 (10-DMA), break below could take it till 8.8303.
