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Zinc market under fresh buying; Support seen at 191.9
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Long liquidation seen in MCX Cotton
Aluminium on MCX settled down 0.15% at 134.4 on profit booking after prices supported spurred by the news of the shutdown of 110,000 mt of aluminium capacity in a capacity swap. Prices also seen some support as the fresh round of US-China trade negotiations in Washington began.
Global primary aluminium output fell to 5.304 million tonnes in January from revised 5.498 million tonnes in December, data from the International Aluminium Institute showed, with the bulk of this coming from winter production cuts in China.
The US dollar index recovered from earlier losses spurred by soft US economic data, as investors consolidated positions and looked for fresh trading incentives amid US-China trade talks and Brexit negotiations.
The greenback earlier fell, hurt by weaker-than-expected US economic data that affirmed expectations the Federal Reserve will hold interest rates steady this year. US headline durable goods orders rose 1.2% in December, below expectation of 1.7%, the Commerce Department said.
November’s growth of durable goods orders was upwardly revised from 0.7% to 1%.US home sales fell in January to their lowest level in more than three years and house prices rose only modestly, suggesting a further loss of momentum in the housing market.
The National Association of Realtors said existing home sales dropped 1.2% to a seasonally adjusted annual rate of 4.94 million units last month. The weakness comes on the same day the Philadelphia Fed reported its gauge of manufacturing fell into negative territory for the first time since May 2016.
Trading Ideas:
–Aluminium trading range for the day is 133.3-136.1.
–Aluminium dropped on profit booking after prices supported spurred by the news of the shutdown of 110,000 mt of aluminium capacity in a capacity swap.
–Prices also seen some pressure hurt by weaker-than-expected US economic data that affirmed expectations Fed will hold interest rates steady this year.
–Global primary aluminium output fell to 5.304 million tonnes in January from revised 5.498 million tonnes in December.
Courtesy: Kedia Commodities
Source: Commodityonline.com
