Aluminium On MCX Settled Up 0.46%

Aluminium on MCX settled up 0.46% at 120.70 on short covering despit the Federal Reserve lifted U.S. interest rates and took a more hawkish than expected stance on future policy, boosting the dollar and weighing on assets priced in the US currency. The dollar strengthened as expectations for another U.S. rate increase this year were kept alive by a policy statement that indicated huge emergency funds pumped into the economy since 2009 could be trimmed.

Sentiments still remain weak after the news that Russian aluminium giant Rusal said it plans to boost its production by 19 percent from 2016 levels to 4.4mts by 2021, amid rising global demand. Also China's aluminium production rose 4.2 percent year-on-year in May to hit its second-highest level on record, while non-ferrous metal output rose 2.4 percent to 4.58mts data from the NBS showed on Wednesday.

China Jan-May non-ferrous output +6.9 percent y/y at 22.6mts China May aluminium output +4.2 percent y/y at 2.83mts, the second highest level after December's record of 2.89mts. China Jan-May aluminium output +8.8 percent y/y at 13.9mts. The government will release a more detailed breakdown of output by metal later this month. Now market players continued to monitor political turmoil in the US after the Washington Post reported that President Donald Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice.

People familiar with the matter told the Post that the obstruction of justice probe started in the wake of Trump's firing of former FBI Director James Comey. Technically market is getting support at 120.4 and below same could see a test of 120 level, And resistance is now likely to be seen at 121, a move above could see prices testing 121.2.

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Suhani Verma

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