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Technically Aluminium market is under fresh selling as market has witnessed gain in open interest by 3.52% to settled at 3474 while prices down 1.05 rupees.
Now MCX Aluminium is getting support at 144.6 and below same could see a test of 143.1 level, And resistance is now likely to be seen at 148.3, a move above could see prices testing 150.5.
Aluminium on MCX settled down 0.71% at 146.05 on fresh selling downswing tracking weakness from LME aluminium prices which came under pressure amid escalating US-Sino trade tensions.
Aluminium prices on MCX seen bounce as support seen from Rupee weakness where Indian rupee nose-dived against the U.S. dollar on Thursday, falling below the 72 mark, amid persistent sell-off in emerging markets driven by worries over global economic growth.
The dollar index is consolidating after its recent rebound and was recently quoted at 95.16. With the dollar paused, the pressure on other markets has eased. Meanwhile US President Donald Trump has said he is prepared to quickly ramp up a trade war with China and has told aides he is ready to impose tariffs on $200 billion more on Chinese imports as soon as a public comment period on the plan ends.
China will be forced to retaliate if the United States implements any new tariff measures, China’s commerce ministry warned on Thursday, as the world’s two biggest economies remain locked in an intensifying trade war.
Last night the US dollar index fell below 95 this followed after St Louis Federal Reserve Bank President James Bullard said on Wednesday that the US Fed should hold off on further interest rate hikes because the stance of monetary policy is already at neutral or possibly restrictive.
Trading Ideas:
–Aluminium trading range for the day is 143.1-150.5.
–Aluminium dropped on concerns over demand as a trade war between the United States and top industrial metals consumer China intensifies.
–Primary aluminium inventories across major consumption areas in China shrank on the week as downstream consumers restocked.
–Inventories of aluminium billet across major consumption areas in China continued to grow as demand in the construction extrusion sector took a hit.
Courtesy: Kedia Commodities
Source: Commodityonline.com
