Commodity Trading Tips for Aluminium by KediaCommodity

Ajay Kumar Kedia 8 April 2013

Aluminium yesterday traded with the positive node and settled 0.1% up at 102.90 but overall look weak as prices will move at low levels on downbeat economic data, despite a softer US dollar. The US March nonfarm private sector employment shown in the ADP National Employment Report missed forecasts. Besides, weekly initial jobless claims rose significantly. Discouraging as they may be, these employment figures mean the US Federal Reserve will continue its QE3. US employment data was a focus of markets during the Qingming holiday in China. US Market ADP employment increased by 158,000, much lower than the forecast of 197,000, and the number of non-farm employment only increased by 88,000, falling short of the 190,000 expected, and hitting a 9-month low. US unemployment rate fell from 7.7%, to 7.6%, but that is due mainly to decreasing employment rate, showing more people stopped looking for jobs. With growing uncertainty towards US economic recovery, European and US stocks and commodities fell across the board. The Reserve Bank of Australia, Bank of UK and European central bank all maintained monetary policies unchanged. But Bank of Japan announced massive easing policies including expanding government bonds purchasing, prolonging deadlines for Japanese government bonds, increasing risk assets purchasing and advancing open assets purchase plan, and this caused JPY against the US dollar to plunge by 3.52% during the week. In yesterday's trading session aluminium has touched the low of 102.5 after opening at 103.4, and finally settled at 102.9. For today's session market is looking to take support at 102.3, a break below could see a test of 101.6 and where as resistance is now likely to be seen at 103.8, a move above could see prices testing 104.6.