Aluminium yesterday traded with the positive node and settled 1.4% up at 110.35 tracking LME three-month aluminum firstly dipped to a low of USD 2,243/mt but closed USD 27.5/mt or 1.22% higher at USD 2,243/mt on Wednesday, supported by climbing oil prices due to the Iran issue, strong US home sales data and a return of LME cancelled warrants to above 30% of total.
Transaction volumes for LME in the US and European markets remained limited with prices moved lower with the falling euro, as Fitch cut credit ratings for Greece.
It was reported on February 22nd that HSBC’s China initial PMI was 49.7, still below 50 mark, and PMI from Germany and France also lingered around 50, below market expectation.
In addition, Fitch’s put Greek issuer default rating of its long-term domestic and foreign currency from CCC to C, and put Greek short-term foreign currency credit rating to C, weighing on financial markets.
The European and US equity markets closed with slight losses and LME Nickel prices ended mixed overnight. In yesterday's trading session Aluminium has touched the low of 108.8 after opening at 108.8, and finally settled at 110.35.
For today's session market is looking to take support at 109.2, a break below could see a test of 108.1 and where as resistance is now likely to be seen at 111, a move above could see prices testing 111.7.
Trading Ideas:
Aluminium trading range for the day is 108.12-111.72.
Aluminium jumped supported by climbing oil prices due to the Iran issue, strong US home sales data.
Aluminium producer RUSAL Plc said it expects a total production cut of 3.9mts, about 8 percent.
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