Aluminium yesterday traded with the negative node and settled -0.74% down at 107.7 as Euro zone FM said overnight they were disappointed by Greece’s lack of determination to implement its austerity plan and decided to postpone voting for the second round of Greek bailout until next Monday, adding to investor worries towards the euro zone and pushing the dollar index higher.
LME aluminum hit a low of USD 2,195/mt and pared losses with short covering before closing USD 17.8/mt or 0.8% lower at USD 2,201/mt but still above the USD 2,200/mt mark.
Boosted by China's central bank president’s statement that China will expand investment and will increase reserves of euro, LME prices advanced slightly however, during the European trading hours, LME prices were on downward track again and hit a low which was due to report that the Greek bailout is facing more difficulties and also a result of stronger dollar.
The euro zone FMs’ telephone conference did not come up with substantial progress. Greece still faced many challenges in receiving financial aid, weighing on market sentiment.
For today's session market is looking to take support at 107, a break below could see a test of 106.4 and where as resistance is now likely to be seen at 108.8, a move above could see prices testing 109.9.
Trading Ideas:
Aluminium trading range for the day is 106.37-109.87.
Aluminium dropped as Euro zone FM said overnight they were disappointed by Greece’s lack of determination
Weakness was limited boosted by China's central bank president’s statement that China will increase reserves of euro
Aluminium daily stocks at Shanghai exchange came up by 12419 tonnes
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