06 AUGUST 2012Shanghai Metals Market
LME aluminum should move within a price range of USD 1,850-1,875/mt: SMM Morning Review
Edited by : AL CIRCLE
2 min read
The US nonfarm payrolls for July released last Friday surged 163,000, beating forecasts and boosting market confidence. As a result, the US dollar index pared early gains, down by 1.20%. LME aluminum gained more momentum for a rebound during the European trading session to touch a high of USD 1,867/mt. The US economy remains weak, dampening investors’ confidence, as its unemployment rate rose to 8.3% despite the notable increase in employees. LME aluminum met resistance at the 5-day moving average before finally closing at USD 1,858/mt, up USD 20/mt or 1.14%. Latest LME aluminum inventories were down 6,450 mt to 4,864,450 mt.
The US dollar index fell to 82, supporting aluminum prices to rally. LME aluminum should struggle at USD 1,860/mt on Monday and test resistance at the 10-day moving average, with price range at USD 1,850-1,875/mt. The most active SHFE 1211 aluminum contract should open higher at RMB 15,300/mt on Monday and test resistance at the 5-day moving average, with price range at RMB 15,275-15,375/mt. Spot discounts of RMB 0-40/mt are expected as selling interest should be low in spot aluminum markets. Trading should be light as downstream enterprises may generally stand on the sidelines at the beginning of the week.
The US dollar index fell to 82, supporting aluminum prices to rally. LME aluminum should struggle at USD 1,860/mt on Monday and test resistance at the 10-day moving average, with price range at USD 1,850-1,875/mt. The most active SHFE 1211 aluminum contract should open higher at RMB 15,300/mt on Monday and test resistance at the 5-day moving average, with price range at RMB 15,275-15,375/mt. Spot discounts of RMB 0-40/mt are expected as selling interest should be low in spot aluminum markets. Trading should be light as downstream enterprises may generally stand on the sidelines at the beginning of the week.
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