Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 21 May 2013

Commodity Trading Tips for Aluminium by KediaCommodity Aluminium yesterday traded with the positive node and settled 0.25% up at 101.4 as US dollar index lost support at 84 overnight following seven straight days of gains, supporting prices to rebound. Total world aluminum production in April fell by 111,000 metric tons from the previous month to total 3.745 million tons, according to figures released Monday by the International Aluminum Institute. Charles Evans, president of the Federal Reserve Bank of Chicago, hinted last night his support for asset buying program, sending the US dollar index down sharply. His opinions are at odds with another three US officials, who appealed last week for exit of QE3 before the end of this year. Evans' remarks sent the US dollar index down 0.48%. Investors are now eyeing Fed Chairman Bernanke's speech on Wednesday and the minutes of the latest monetary policy meeting. Japan's short-term manufacturing sentiment index for May was +7, showing positive reading for the first time since May 2012. Non-manufacturing sentiment index was +19 against the previous reading of +12, the highest level since October 2007. These indicate that the BOJ's easing policy is yielding fruit. The PBOC issued RMB 10 billion in three-month bills to combat "hot money". This move surprised markets as the last time the PBOC issued bills happened in December 2011. In yesterday's trading session aluminium has touched the low of 100.1 after opening at 100.8, and finally settled at 101.4. For today's session market is looking to take support at 100.4, a break below could see a test of 99.4 and where as resistance is now likely to be seen at 102.1, a move above could see prices testing 102.7.