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MCX Aluminium may trade between 142.1-147.1 levels

Commodity Online 2018-11-09 11:48:25

Technically MCX Aluminium market is getting support at 143.3 and below same could see a test of 142.1 level, And resistance is now likely to be seen at 145.8, a move above could see prices testing 147.1.

Aluminium on MCX settled up 1.15% at 144.55 tracking firmness from London aluminium prices rose on Thursday to add to sharp gains from the previous session, with a federal court in Brazil upholding the partial shutdown of the world's largest alumina refinery, run by Norsk Hydro.

The decision is part of a months-long environmental dispute with Brazilian authorities, after Norsk Hydro admitted to making unlicensed emissions of untreated water during severe rains in February.

The rise also came after the U.S. Commerce Department said it would impose final anti-dumping and anti-subsidy duties on Chinese common alloy aluminium sheet products of 96.3 percent to 176.2 percent.

Last night the US dollar held on to earlier gains as the Federal Reserve kept its monetary policy on hold and indicated further gradual rate hikes. China Customs published China's trade balance for October, reporting a bigger-than-expected trade surplus as imports shrank significantly.

China's trade balance for October came in at $34.01 billion, compared with the previous $31.70 billion. On a yearly basis, exports rose 15.6% in October, compared with a previous rise of 14.5%, and imports surged 21.4%, compared with a previous increase of 14.3%.

The US Federal Reserve also voted to maintain the current benchmark interest rate. The FOMC will keep the federal funds rate in a range of 2% to 2.25%, in line with market expectations.

Now for a day ahead Key economic data to watch today include China’s CPI and PPI for October, its social financing and M2 money supply for October, the US PPI in October, as well as the University of Michigan consumer sentiment index for November.

Trading Ideas:
--Aluminium trading range for the day is 142.1-147.1.
--Aluminium gained as prices get some support from the news that Brazil court upheld partial shutdown at Hydro Alunorte alumina refinery.
--China's aluminium smelters are under pressure from current low prices, with the situation exacerbated by high costs for key raw material alumina.
--China's exports of alumina surged more than fivefold from August to 165,830 tonnes, according to customs data released.

Courtesy: Kedia Commodities