Technically MCX Aluminium market is getting support at 136.7 and below same could see a test of 135.8 level, And resistance is now likely to be seen at 139.4, a move above could see prices testing 141.2.
Aluminium on MCX settled down 1.68% at 137.70 as downward pressure emerging across global equity indices in addition to a sharp downturn in oil futures, which tricked through to metals prices.
While sentiments may turn positive as consumption grew faster than supply, the inventory destocking cycle across Chinese aluminium market lasted for an extended period in 2018 and is expected to continue in 2019 with broad-based supply cuts.
Supply-side reform and winter production curbs slowed primary aluminium output growth in 2018, Liu told the delegates at 2018 China Aluminium Processing Industry Chain Summit in Guangzhou, Guangdong province, on Thursday December 6.
The US dollar weakened against major peers on Thursday as US Treasury yields tumbled and traders scaled back expectations on the number of rate hikes the Federal Reserve would implement amid weakening economic data and heightened market volatility.
The dollar has been under pressure this week as an inversion in part of the US yield curve raised a red flag for a potential recession. While Fed policymakers are still widely expected to raise interest rates again at their December 18-19 meeting, but the market focus is on how many rate hikes will follow in 2019.
Separately, data showed private employers hired fewer workers than expected in November, pointing to a moderation in the pace of job growth.
Now a day ahead Economic data slated for release today include China’s November foreign exchange reserves, the eurozone’s third-quarter GDP growth and US November nonfarm payrolls report, the University of Michigan’s December consumer confidence index and October wholesale inventories.
--Aluminium trading range for the day is 135.8-141.2.
--Aluminium dropped as Huawei CFO arrest in Canada hampered market sentiment
--Oversupply to weigh on aluminium prices in Q1 2019 - Global oversupply of alumina may reach nearly 1.77 million mt in the first quarter of 2019.
--Social inventories of primary aluminium continue decline amid supply cuts
Courtesy: Kedia Commodities