Aluminium yesterday traded with the negative node and settled -0.05% down at 106.30 prices dropped tracking LME overnight, as the euro weakened to push the US dollar index above 82 amid higher expectations that the European Central Bank will cut interest rates, following delivery of weak euro zone economic data. LME aluminum started at $1,970/mt and hit a high of $1,982/mt, only to drop back to close down $15/mt or 0.76% at $1,956/mt, after finding its low at $1,953/mt. It is now pressured above the 30-day moving average. Aluminum trading should remain cautious before the ECB interest rate meeting. While fundaments within China have changed little, pressure from recent power rate cuts still exists. China's services firms grew at their slowest rate in 10 months in June, easing back from May's 19-month peak, as new order growth cooled albeit while marking 43 months of consistent expansion, a private sector survey showed on Wednesday. In yesterday's trading session aluminium has touched the low of 106.2 after opening at 106.2, and finally settled at 106.3. For today's session market is looking to take support at 105.9, a break below could see a test of 105.5 and where as resistance is now likely to be seen at 107, a move above could see prices testing 107.6.
Aluminium trading range for the day is 105.53-107.63.
Aluminium dropped slightly as as the euro weakened to push the US dollar index above 82
Fundaments within China have changed little, pressure from recent power rate cuts still exists.
Aluminium daily stocks at Shanghai exchange came down by 2637 tonnes