Nickel market under fresh selling; Support seen at 929
Zinc market under short covering; Support seen at 177.1
Copper market under short covering; Support seen at 417.1
MCX Natural Gas under long liquidation; Support seen at 200.8
MCX Crude Oil may trade between 4779-4861 levels
Technically Aluminium is getting support at 144.4 and below same could see a test of 143.8 levels and resistance is now likely to be seen at 145.4, a move above could see prices testing 145.8.
Aluminium on MCX settled up 0.17% at 145 gained on short covering on continued weakness in the dollar provided broad-based support to the SHFE base metals. The currency came under pressure following a speech from US Federal Reserve Chairman Jerome Powell last Friday in which he expressed gradual US interest rate increases remain appropriate.
In addition, an announcement from the People’s Bank of China last Friday that Chinese banks would resume using a counter-cyclical factor when calculating the daily reference rate of the yuan against the dollar to counter the bias against a weaker yuan sparked further selling of long dollar positions.
Also China’s investment growth, already at record lows, may weaken even further in the future and authorities should step up fiscal and financial measures to give it a boost, the state planner said on Monday.
Meanwhile Beijing is urging more infrastructure spending as the economy faces both domestic and external risks, such as U.S. tariffs. But the benefits will take time to kick in, with analysts expecting the economy to get worse before it gets better.
Last night the US dollar slumped to the lowest in four weeks at 94.76 while the Mexican peso climbed higher after the two countries reached a preliminary trade deal that could replace the North American Free Trade Agreement (NAFTA).
Now Market participants should monitor developments such as Germany’s actual monthly retail sales in July, US wholesale inventories in July, and its Conference Board (CB) consumer confidence index for August.
–Aluminium trading range for the day is 143.8-145.8.
–Aluminium seen supported as a weaker US dollar and improved market sentiment buoyed the prices.
–China’s export of unwrought aluminium and aluminium semis in July rose 18% from a year ago to stand at 519,000 mt.
–China’s aluminium exports rose to their second-highest level on record in July, as a weaker yuan and a still-favourable price arbitrage to international markets.
Courtesy: Kedia Commodities