Commodity Trading Tips for Zinc by Kedia Commodity

Ajay Kumar Kedia 30 August 2013

zinc Zinc settled up 0.78% at 128.90 recovered in the late session while pressure seen after Germany's economic data released overnight was depressing, and since situations in Syria were still in chaos, the euro against the US dollar plummeted by 0.73%. US positive GDP and initial jobless claims data enhanced market speculations that the Fed will scale back QE3 soon, lending support to the US dollar index, rebounding to 82, gaining back near-four-week losses, and weighing down zinc prices. Market fears about situations in Syria alleviate, with non-US dollar currencies falling, which supported the US dollar index to rebound, breaking through the 20-day moving average, dipping to a new low of $1,924/mt since mid-August. US positive initial jobless claims strengthened expectations that US non-farm employment data to be released next week will improve, which raised expectations of an end to QE3. The market's focus turned to the QE3 issue again. US and its allies took a mixed attitude whether to take military attack on Syria. Only France expressed its supports, while UK is attempting to resolve political hinders, and Germany said the issue should be resolved by the United Nations Security Council. US Congress required that Obama should not attack Syria without authorization from the Congress, with market concerns over Syria easing, and petroleum and gold prices falling. On the other than, the number of US initial jobless claims last week was 331,000, down 6,000 from a week earlier, showing US job market continues to improve; annualized US Q2 GDP was revised to a growth of 2.5%, higher than the forecast of 2.2% and initially 1.7%. Besides, it was reported Summers will likely take the place of Ben Bernanke, triggering expectations that the Fed will end QE3 in September, pushing up the US dollar index to 82. Technically market is getting support at 126.9 and resistance is now likely to be seen at 132.7.