MCX Natural Gas under fresh buying; Support seen at 201.5
MCX Copper under fresh buying; Resistance seen at 462.3
MCX Zinc under fresh buying; Support seen at 196.3
MCX Nickel under fresh buying; Support seen at 951.4
MCX Mentha Oil under fresh selling; Resistance seen at 1624.8
Technically MCX Aluminium market is getting support at 145 and below same could see a test of 144.3 level, And resistance is now likely to be seen at 146.7, a move above could see prices testing 147.7.
Aluminium on MCX settled down 0.27% at 145.65 dropped on long liquidation tracking weakness from LME aluminium prices which fell below all moving averages as the US dollar strengthened.
Yesterday the US dollar increased to a two-week high against a basket of currencies as unexpectedly strong data on US services industries and new home sales allayed some worries about the US economy.
The yield on 10-year Treasuries remained steady as Federal Reserve Bank of Boston President Eric Rosengren said it may take policymakers “several meetings” to determine whether risks to the US economy will clear up or more seriously hamper growth in 2019.
Chinese shares climbed on Tuesday March 5 after the government vowed to cut taxes and expand infrastructure investment to support the economy. While China’s service sector grew at the slowest pace in February, according to a private indicator on Tuesday.
This was consistent with an official gauge that pointed to growing headwinds faced by service providers. The Caixin China services purchasing managers’ index (PMI) declined to 51.1 in February from January’s 53.6.
Growth in new orders fell to the weakest since October, while export sales also rose at the slowest in five months, reflecting softer demand both at home and overseas.
Now a day ahead China will release data on its foreign exchange reserve for February, and the US will release its ADP payroll data of last month, its trade account for December.
Trading Ideas:
–Aluminium trading range for the day is 144.3-147.7.
–Aluminium remained under pressure underpinned by a resilient economy and a flagging euro ahead of an upcoming European Central Bank policy meeting.
–China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade with US.
–China to keep reasonable size of FX reserves. China to keep stock, bond and FX markets steady
Courtesy: Kedia Commodities
Source: Commodityonline.com
