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Friday, March 24, 2023

MCX Aluminium under fresh selling; Resistance seen at 129.2

Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 14.34% to settled at 4609 while prices down 3.1 rupees.

Now MCX Aluminium is getting support at 129.2 and below same could see a test of 128 level, And resistance is now likely to be seen at 132.6, a move above could see prices testing 134.8.

Aluminium on MCX settled down 2.32% at 130.30 on fresh selling despite the dip on Tuesday, the US dollar is still at highs and this would continue to weigh on aluminium prices. The dollar held steady versus its peers on Tuesday, hovering close to its 2019 high as U.S.-Sino trade tensions and global growth worries underpinned the greenback’s safe-haven appeal.

US President Donald Trump said he could see letting the March 1 deadline for reaching a trade agreement with China slide a little, but that he would prefer not to and expects to meet Chinese President Xi Jinping to close the deal at some point.

Trump also said on Tuesday he was not happy about a tentative immigration deal reached by a bipartisan group of lawmakers, but he did not anticipate another partial shutdown of the federal government.

Now investors turned to riskier assets on optimism over the outcome of US-China trade talks. From data point US job openings rebounded to a record high in December, underscoring robust demand for workers.

The number of positions waiting to be filled rose by 169,000 to 7.34 million, from an upwardly revised 7.17 million in the prior month, according to the Labor Department’s JOLTS released on Tuesday.

The quit rate remained at 2.3%, indicating confidence that job prospects remain strong. Now a day ahead Economic data slated for release today include China’s January trade balance, the US January consumer price index (CPI).

Trading Ideas:
–Aluminium trading range for the day is 128-134.8.
–Aluminium dropped as U.S.-Sino trade tensions and global growth worries weighed on the prices.
–The dollar rose as news of the deal to avert a fresh government shutdown was overshadowed by continued concerns about the U.S.-China trade war.
–China’s consumption is unlikely to resume quickly in the short run, and this will extend the weak trend.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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