Support from better Chinese PMIs LME aluminium has been oscillating in a large descending wedge formation all year as macro uncertainties weigh on the global economic outlook and metal demand. That narrative has not changed and as such the pattern is likely to continue playing out....
This week got off to a positive start with both the official and Caixin manufacturing PMIs for China rebounding in September and also beating consensus expectations. But all eyes are now turning to US-China trade talks set to resume at a high level in October. Progress on this front, combined with better manufacturing data would boost base metal sentiment and prices in Q4.
Aluminium: Trading within the descending wedge
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