Aluminium yesterday settled flat at 105.40 but sentiments remain weak after Chinese FM Lou Jiwei said China's economy will not have a hard landing, but slower growth is the natural result of economic restructuring, weighing on base metals markets, and driving LME price to fall. Later, the testimony of Bernanke was in line with market expectation, Bernanke said the Fed will wind down the asset purchasing program in a flexible way, adding to concerns over the US recovery. While Fed Chairman Bernanke said any decision to reduce debt-buying program will depend on how the economy and labor market perform. LME aluminum pulled back to $1,800/mt due to a strengthening US dollar. The market overnight was focused on US Bernanke's testimony before the House Financial Services Committee. He defended for easing policies again, and insisted that the Fed will likely stop bond purchasing plan in mid-2014, with unemployment rate around 7% by then, but emphasized monetary policies will also depend on economic data. The Fed released its Beige Book saying US economy continued to grow mildly during June and early July, and manufacturing activities in most US regions continued to expand, with manufacturing orders, sales or output increasing. That triggered market concerns that the Fed will scale back asset purchasing at anytime, pushing up the US dollar index to close up 0.23%, and weighing down base metals prices. Technically market is getting support at 104.8 and below same could see a test of 104.2 level, And resistance is now likely to be seen at 106.3, a move above could see prices testing 107.2.

Trading Ideas:

Aluminium trading range for the day is 104.2-107.2.

Aluminium settled flat but sentiments remain weak after Chinese FM Lou Jiwei said China's economy will not have a hard landing

Fed Bernanke said any decision to reduce debt-buying program will depend on how the economy and labor market perform.

Aluminium daily stocks at Shanghai exchange came down by 1946 tonnes