Optimistic development prospects of the downstream industry Aluminium market demand has continued to improve

**We are bullish for a long time, but we cannot suppress the recent international and domestic economic situation. The policy favors the US dollar trend. In the short term, it will show a declining trend. The metal's anti-inflationary sentiment may have a rebound, but the increase is less than estimated, and the short term is expected to fluctuate. Down, but the decline is limited. The day before yesterday, most of the gyres were rebounding, and the dollar was also rising. Market participants were surprised and confused. It was expected that the downside was again yesterday. As the market continues to fluctuate, the weather is good in the near future, but the market may be dominated by downtrends.

The ** is still holding a bullish situation for a long time, but it cannot restrain the recent international and domestic economic situation policies favorable to the trend of the US dollar. In the short term, it will show a turbulent downward trend. Although there may be a rebound, but the increase is less than estimated, the short term is expected to oscillate and the downside is limited. The short-term support line is expected to be at $23,800.

Looking at the macroeconomic situation, the medium- and long-term bullies are bullish since the Federal Reserve announced its loose monetary policy on 3 November. The injection of 600 billion US dollars has greatly stimulated the negative sentiment for investors and the market for the dollar. The rally was fierce. The nickel price rose by 950 US dollars a day, but this sudden bad feeling quickly cooled down. The market and investors began to pay attention to the current economic situation, and nickel prices began to slowly adjust back. However, judging from the overall economic situation, a large amount of capital flows into the market, and 600 billion yuan is only a phased capital investment. In the long-term, the scale is expected to be greater, which will inevitably bring about the weakening of the US dollar, waiting for the recovery of the US economic situation and driving the US dollar index at a time. The steady increase was not included in our recent consideration. Therefore, in the medium to long term, the weakening of the US dollar is inevitable, and the growth of the driven genus will also be expected.

Looking at the current situation, the economic situation of the parties favors the US dollar. The ** is to be shaken and weakened this week as previously stated. On the one hand, the negative sentiment of the Fed's QE2 on the US dollar is exhausted in the short term, and the market and investors have entered a period of concern.

Secondly, the G20 summit is on the horizon and countries have criticized the QE2 in the United States. The loose monetary policy of the Fed may trigger inflation in emerging countries. The influx of hot money has caused countries to worry about the economic bubble and speculation on the currency war. All adjustments in exchange rates are the preferred measures against inflation at the moment.

Third, China is now the subject of much concern for the G20. The issue of appreciation of the *** is a more tense topic between China and the United States. In the sensitive period when economic indicators will be announced in October, the one-year central bank bill issued by the Central Bank on the 9th will be issued. The unexpected increase in the yield rate was about 5 basis points, which was the second increase since the rate hike on October 20. On the 10th, the People's Bank of China announced that since November 16th, the deposit reserve ratio of deposit-taking financial institutions has been raised by 0.5%. This decision has once again increased the market's forecast for the second interest rate increase during the year. These moves have once again strengthened the tightening expectations of the market, and anti-inflation measures have been tightened step by step.

Fourth, the Fitch Ratings Company issued a report on Tuesday that last week (November 1-5) the risk of credit default swaps (CDS) on European sovereign debt expanded, with the Irish sovereign debt CDS index expanding by 24%, and the Portuguese sovereign debt CDS. The index increased by 22%. Triggered market concerns about the European debt crisis. European stocks closed slightly lower on Wednesday, falling from their highs in two years. Investors renewed concerns over the European debt crisis and the euro fell against the US dollar index.

Combine all aspects of anti-inflation sentiment and dissatisfaction with the Fed’s QE2, coupled with the turmoil in the Eurozone, which led to the weakening of the Euro, and the subsequent measures have triggered support for the US dollar, and the G20 summit may bring new directions. The market is still hopeful that before the end of the G20 summit, the US dollar is expected to sustain its strong support, which in turn will drive the turbulent downturn of the FX market, or rebound, but it is expected that the increase will be smaller than the decline.

The rebound may be due to concerns about the anti-inflationary performance of the US dollar speculatively. The LME base metals closed higher on Tuesday and the US dollar also rose at the same time, mainly due to strong fundamentals and positive Chinese data. The declining inventory and supply concerns coupled with strong Chinese auto sales and expectations of China's potentially strong trade surplus data on Wednesday helped propel up tycoons. In addition, investors are not very optimistic about the dollar's resistance to inflation, and the temporary rebound of the US dollar has certain risks. Relatively speaking, resistance to inflation is stronger, and capital inflows are also the reason for the rebound. To be optimistic about whether or not the renminbi is bullish on the US dollar, whether the nickel market rises or falls depends on whether the two sides play against each other. Which side's situation is even stronger, I believe that the US dollar's recent positive sentiment has become stronger, and the genus has not risen as much as it has seen.

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