Aluminium yesterday traded with the positive node and settled 0.9% up at 111.15 as support seen with British and European central banks’ decisions to keep interest rates unchanged and ECB President Trichet’s warning against high inflation pressure, increasing economic risk and a huge dial-back in economic growth in the euro zone on September 8th. Later during the day, the US Dept of Labor announced that new unemployment claims surged unexpectedly to 414,000 during previous week, indicating unemployment rate remained high, and US Fed president Bernanke did not mention any economic stimulation policy either during later speech, which caused US stock prices to close lower. Base metals only slightly trimmed gains during European trading hours, however, with announcement of employment aid package by US President Obama. Following fluctuation near USD 2,400/mt, LME aluminum hit an intraday high of USD 2,438/mt at the tail of trading with higher investor confidence following announcement of employment package by US President Obama. The metal only closed USD 14/mt or 0.58% higher at USD 2,419/mt, however, due to falling stock prices. For today's session market is looking to take support at 110, a break below could see a test of 108.9 and where as resistance is now likely to be seen at 112.1, a move above could see prices testing 113.

Trading Ideas:

Aluminium trading range is 108.9-113.

Aluminium gained on investor confidence following announcement of employment package by US Presiden

US Department of Labor announced that new unemployment claims surged unexpectedly to 414,000

Prices are expected supported by stock building before the Chinese Mid-Autumn Festival.