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MCX Aluminium under fresh buying; Resistance seen at 144.2
Commodity Online | June 14 2019
UPDATED 10:10:48 IST

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MCX Aluminium may trade between 132-134.4 levels

Technically Aluminium market is under fresh buying as market has witnessed gain in open interest by 6.14% to settled at 2024 while prices up 0.15 rupees.

Now MCX Aluminium is getting support at 142.9 and below same could see a test of 142.1 level, And resistance is now likely to be seen at 144.2, a move above could see prices testing 144.7.

Aluminium on MCX settled up 0.1% at 143.55 on hopes for more stimulus after prices remained under pressure after weak data from the economy of China. Some Japanese aluminium buyers have agreed to pay a premium of $108 per tonne for shipments in July to September, up 3% from the current quarter, amid tighter supply in Asia.

The figure is higher than the $105 per tonne paid this quarter and marks a second straight quarterly increase. Producers had originally sought $115-$120 per tonne. Japan is Asia's biggest importer of aluminium and the premiums for primary metal shipments it agrees to pay each quarter over the benchmark London Metal Exchange cash price set the benchmark for the region.

Government data showed moderate US inflation in May that could increase pressure on the Federal Reserve to cut interest rates this year. The US Labor Department said that its consumer price index (CPI) edged up 0.1% last month, as cheaper gasoline offset the rebound in food prices.

Consumer inflation in China for May rose to the highest in 15 months, driven by higher prices of pork and fruit due to supply issues, the National Bureau of Statistics data showed. In May, Chinese banks provided 1.18 trillion yuan in net new yuan loans, up from 1.02 trillion yuan in April, central bank data showed.

Trading Ideas:
--Aluminium trading range for the day is 142.1-144.7.
--Aluminium prices ended with gains on hopes for more stimulus after prices remained under pressure after weak data from the economy of China.
--Some Japanese aluminium buyers have agreed to pay a premium of $108 per tonne for shipments in July to September, up 3% from the current quarter.
--Government data showed moderate US inflation in May that could increase pressure on the Federal Reserve to cut interest rates this year.

Courtesy: Kedia Commodities

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