Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 1.63% to settled at 1622 while prices up 3.35 rupees.
Now MCX Aluminium is getting support at 214.5 and below same could see a test of 212.5 levels, and resistance isnow likely to be seen at 217.7, a move above could see prices testing 218.9.
Aluminium yesterday settled up by 1.57% at 216.55 as the People’s Bank of China (PBoC) announced to raise the foreign exchange RRR by 2 percentage points to 9%.
On the macro front, the US consumer confidence picked up unexpectedly at the beginning of December, according to US Department of Labor; US CPI in November rose 6.8% YoY, and the inflation surged again, heightening market expectation of accelerated taper since November, 2022.
The reserve ratio will be increased to 9% from 7%, the People’s Bank of China (PBOC) said on its website, to strengthen FX liquidity management at financial institutions China will start adding fiscal stimulus in early 2022 after the country’s top officials said their key goals for the coming year include counteracting growth pressures and stabilizing the economy.
Data showed that China’s aluminium output was 3.07 million mt in November (30 days), a year-on-year decrease of 3%. The daily average output was 102,000 mt, flat on the month. China produced 35.32 million mt of aluminium from January to November, a year-on-year increase of 4.35%.
The operating capacity of aluminium rose slightly in November. Among them, the production in Guangxi and Chongqing reduced due to short power supply. While the output was also negatively impacted by the accident of an aluminium smelter in Wenshan, Yunnan.
Trading Ideas:
–Aluminium trading range for the day is 212.5-218.9.
–Aluminium gains as the PBoC announced to raise the foreign exchange RRR by 2 percentage points to 9%.
–Data showed that China’s aluminium output was 3.07 million mt in November (30 days), a year-on-year decrease of 3%.
–China raises banks’ FX reserve requirements for 2nd time this year.
Courtesy: Kedia Commodities
Source: Comodity Online
