Fresh selling seen in Aluminium, open interest up 6.24%

Aluminium settled down -0.7% at 106.25 as major economic indicators released yesterday fell short of market expectations. China's exports of unwrought aluminum and aluminum semis were 450,000 mt in June, with YTD exports from January to June at 2510,000 mt, up 35.2 % YoY. Aluminium stocks held at three major Japanese ports stood at 499,900 tonnes at the end of June, down 0.5 percent from 502,200 tonnes a month earlier.

China's economy grew an annual 7.0 percent in the second quarter, steady with the previous quarter and slightly better than analyst forecasts, though further stimulus is still expected after the quarter ended with a stock market crash. The U.S. Commerce Department said that retail sales declined by a seasonally adjusted 0.3% last month, disappointing expectations for a gain of 0.2% and following an increase of 1.0% in May. Core retail sales, which exclude automobile sales, fell by a seasonally adjusted 0.1% in June, compared to forecasts for a 0.5% increase and after rising 0.8% in the preceding month.

Wednesday’s testimony by Federal Reserve Chair Janet Yellen to the Senate Banking Committee will also be closely watched for any indication on when U.S. interest rates may start to rise. Last week, Fed Chair Yellen said that the central bank is on track to raise interest rates at some point this year, but warned over weakness in the labor market. Technically market is under fresh selling as market has witnessed gain in open interest by 6.24% to settled at 7045 while prices down -0.75 rupee, now Aluminium is getting support at 105.6 and below same could see a test of 105 level, and resistance is now likely to be seen at 106.9, a move above could see prices testing 107.6.