Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 4 September 2014

Aluminium settled down -1.69% at 125.20 possibly due to profit-taking after the news hit that Russia and Ukraine reached a cease-fire agreement while pressure seen despite positive US factory orders for July. US factory orders, published on Wednesday, grew 10.5% MoM in July, the highest monthly increase since records began in 1992. The steep rise was largely driven by outsized orders from Boeing. Durable goods orders excluding the volatile transportation, however, slipped 0.7% in July, shy of expectations. The US Federal Reserve reported in its Beige Book that the US economy expanded at a modest to moderate pace over the past several weeks, dovetailing with recent comments by some policymakers. This means that the US Fed is likely to retain highly accommodative monetary policy to prop up the economy. Investors were looking ahead to the latest U.S. employment report, due for release on Friday, for further indications on the strength of the recovery in the labor market, a key factor in deciding the future path of monetary policy. Expectations that the Federal Reserve is growing closer to raising interest rates have boosted the dollar against the euro and the yen, as the European and Japanese central banks look likely to stick to a looser monetary policy stance. Market players are also awaiting the ECB meeting on Thursday amid mounting expectations that the central bank will announce quantitative easing measures as a way to shore up growth and stave off deflation. Technically market is under long liquidation and getting support at 124.3 and below same could see a test of 123.3 level, And resistance is now likely to be seen at 127, a move above could see prices testing 128.7.