Aluminium yesterday traded with the negative node and settled -0.19% down at 107.70 as Italian and Spanish debt yields climbed. Greek stocks prices jumped before the Greek election. US CPI and employment data disappointed, dragging the US dollar index below 82. LME aluminum opened at $1,960/mt during Asian trading and climbed slightly, shortly breaking through the 5-day moving average and fell back. It settled down $6.5/mt or 0.33% at the 2-year low $1,953.5/mt. The Greek election is near. Surging Greek stocks prices overnight also boosted confidence in European and US equity markets. The US dollar index dipped below 82 due to weak economic data. Risk aversion is still strong though, and will continue to limit the moving band of LME aluminum prices to $1,950-1,970/mt. Besides, signs showed that the Greece’s left wing party agreed to negotiate with EU, abating risks of extreme events. The US Department of Commerce reported the May retail sales were down 0.2% from a month ago, and PPI for May was down 1.0%, depressing market mood. This may force the Fed to adopt stimulus package during the monetary policy meeting scheduled for next Monday. For today's session market is looking to take support at 107.3, a break below could see a test of 106.8 and where as resistance is now likely to be seen at 108.4, a move above could see prices testing 109.1.

Trading Ideas:

Aluminium trading range for the day is 106.83-109.13.

Aluminium dropped but downside was limited as US CPI and employment data disappointed, dragging  dollar index below 82.

Surging Greek stocks prices overnight also boosted confidence in European and US equity markets.

Risk aversion is still strong though, and will continue to limit the moving band of LME aluminum prices to USD 1,950-1,970/mt.