Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 23 May 2013

Aluminium yesterday traded with the positive node and settled 1.79% up at 103.35 as US Federal Reserve Chairman Bernanke’s testimony to the congress overnight was in support of QE3 to propel US economy. However, Bernanke also said that asset buying may be scaled back later this year if economy improves further. The minutes of April policy meeting indicate intense debate among Fed officials over whether bond purchases should be curtailed. Later, optimistic sentiment from continuation of easing monetary policy in the short term faded. Bernanke’s speech last night came under the spotlight. Bernanke explicitly expressed support for QE3 in his testimony, boosting market sentiment and helping US stocks hit a new record high. Nevertheless, during the Q&A session, Bernanke said that the FOMC may scale back asset buying during policy meetings to come and that whether or not to curtail bond purchases depends on how economy evolves. The minutes of the May policy meeting indicate that a majority of Fed officials are in favor of using future economic data as the basis for deciding whether to slash accommodative monetary policy or not. Retail sales in the UK surprised markets with a 1.3% drop in April, the biggest decline since April 2012. As widely expected, BOE Governor Mervyn King called again for an extra 25 billion pounds of asset purchases. His appeal was echoed by Paul Fisher and David Miles. In yesterday's trading session aluminium has touched the low of 101.75 after opening at 101.8, and finally settled at 103.35. For today's session market is looking to take support at 102.2, a break below could see a test of 101.1 and where as resistance is now likely to be seen at 104, a move above could see prices testing 104.6.