Aluminium yesterday traded with the positive node and settled 0.45% up at 110.5 tracking LME three-month aluminum gained USD 22.8/mt or 1.06% overnight as impact of euro zone downgrades faded and focus is put on today’s Chinese GDP data.
American markets were closed on Monday in memory of Martin Luther King.
Transactions for LME aluminum therefore were down almost by half.
China’s 4Q GDP data is due to come out 10 A.M. Beijing time today and is followed by the New York Fed manufacturing index which may determine market directions.
Investors are expected to be restrained before release of above data. No solid news came from overseas market overnight.
As market gradually digested news that Standard & Poor’s cut credit rating of nine European countries, market sentiment gradually stabilized.
Standard & Poor’s announced overnight to cut EFSF's credit rating from AAA to AA+, and set the outlook to negative.
It is expected that Standard & Poor’s will restore its outlook to AAA if EFSF’s finances improve.
The news exerted limited impact on market, with euro fluctuating narrowly and LME base metal prices closing mixed.
In yesterday's trading session Aluminium has touched the low of 109.55 after opening at 109.65, and finally settled at 110.5.
For today's session market is looking to take support at 109.8, a break below could see a test of 109.2 and where as resistance is now likely to be seen at 110.9, a move above could see prices testing 111.3.
Trading Ideas:
Aluminium trading range is 109.2-111.3.
Aluminium rose as investors decided that S&P's downgrades of nine euro zone countries' credit ratings last week.
Market gradually digested news that Standard & Poor’s cut credit rating of nine European countries
Aluminum daily stocks at Shanghai exchange came up by 2607 tonnes
Courtesy: Kedia Commodities
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