Aluminium yesterday traded with the positive node and settled 1.68% up at 111.75 to levels unseen in nearly five-months, rallying with the euro as the dollar slid after Greece confirmed it had clinched a deal for emergency aid to help the country avoid a disorderly default.
A stronger euro makes dollar-priced metals cheaper for European buyers.
Reinforcing strong gains for base metals, the US government reported a steep decline in the number of Americans filing new applications for unemployment benefits last week.
Greek political leaders clinched a long-stalled deal by agreeing to harsh austerity measures and reforms required to secure a second international bailout in two years.
EU partners and the IMF have been exasperated by a string of broken promises and weeks of wrangling over the terms of a bailout, with time running out to avoid a chaotic default.
But Greece's new deal was confirmed by ECB President and should pave the way for a 130 billion euro aid package for the troubled country.
Details were scarce and investors wondered whether it would be enough to secure the funds as well as what contribution the ECB will offer in the restructuring of Greece's debt.
For today's session market is looking to take support at 110.4, a break below could see a test of 109.1 and where as resistance is now likely to be seen at 112.6, a move above could see prices testing 113.5.
Trading Ideas:
Aluminium trading range for the day is 109.08-113.48.
Aluminium settled 1.68% up at 111.75 to levels unseen in nearly five-months, rallying with the euro as the dollar slid
Chinese Aluminium prices are likely to rise as demand picks up with fabricators resuming business
Aluminium daily stocks at Shanghai exchange came up by 781 tonnes
Courtesy: Kedia Commodities
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