Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 15 April 2013

Aluminium settled 0.1% up at 100.35 as US economic indicators announced last Friday were downbeat. The US retail sales in March dropped to the lowest in nine months. Consumer confidence index for April fell far short of forecasts. Its PPI hit a 10-month low, while its business inventories increased only 0.1% MoM in February, which is below expectations. These disappointing figures dampened market sentiment. As a result, the US dollar index staged a strong rally, causing US stock markets to close down. Cyprus plans to sell 400,000 mt of gold, while Goldman Sachs lowered forecasts for gold prices in 2013, stimulating shorts to aggressively increase positions and sending gold and silver prices down by more than 5%. LME aluminum tumbled to the lowest since August 2012 at USD 1,852/mt. The US retail sales in March slipped 0.4% MoM to USD 418.28 billion due to falling gasoline prices. Sales from catering, online shopping and furniture, in contrast, increased. The preliminary reading of the University of Michigan Consumer Sentiment Index for April slid 6.3 percentage points from the final reading of March to 72.3, its lowest since last July. The unexpected slump in labor market in March and uncertainty from the US Federal Government’s fiscal policies are the major reasons behind the decline in cci. As much as 32% of people surveyed believe the US unemployment rate will rise compared with current levels at the end of this year, while only 24% expect unemployment rate to fall sharply. A mere 9% of people surveyed are satisfying with existing fiscal policies. The March PPI was -0.6%, below the previous reading and forecasts. For today's session market is looking to take support at 99.6, a break below could see a test of 98.9 and where as resistance is now likely to be seen at 101.3, a move above could see prices testing 102.3.