Aluminium yesterday traded with the positive node and settled 0.32% up at 110.3 following a four-day loss, LME aluminum added USD 15/mt or 0.69% settling at USD 2,190/mt on Monday, after Fed President’s signal to maintain low interest rates dragged the US dollar index below 79. Expectation of QE3 following Federal Reserve Chairman Ben Bernanke’s remark supported the prices, According to economic data announced from the US on March 26th, the home data for February and Dallas Fed Manufacturing Index for March were both lower than market expectation, though recent economic data from the US were largely improved to great extent. The weak data in the home sector and manufacture sector shows that the US economic recovery outlook is still rugged. However, during the evening, expectation over QE3 was further stoked following Fed Chairman Ben Bernake’s remark. Meanwhile, optimism of European debt crisis and European economic recovery brought by remarks of European officials sent three major equity markets in the US to rise considerably. In this context, LME base metal prices largely closed with gains overnight. In yesterday's trading session aluminium has touched the low of 110.1 after opening at 110.25, and finally settled at 110.3. For today's session market is looking to take support at 110, a break below could see a test of 109.8 and where as resistance is now likely to be seen at 110.6, a move above could see prices testing 111.

Trading Ideas:

Aluminium trading range for the day is 109.77-110.97.

Aluminium gained after Fed President’s signal to maintain low interest rates dragged the US dollar index below 79

Expectation of QE3 following Federal Reserve Chairman Ben Bernanke’s remark supported the prices

The weak data in the home sector and manufacture sector shows that the US economic recovery outlook is still rugged