Aluminium yesterday traded with the positive node and settled 0.85% up at 106.45 as support seen from the drop of June CPI to a two and a half year low in China has opened room for more monetary easing. LME aluminum hit a high of USD 1,933.5/mt as shorts took profits, before narrowing gains to $25.5/mt or 1.34% closing at $1926.3/mt. Investors are cautious now after being hit recently by weak economic data. LME aluminum is expected to test support at USD 1,900/mt and hover between USD 1,900-1,945/mt. The macroeconomic front was relatively quiet overnight. In early US and European trading session, markets continued to digest China's latest economic data and helped LME fluctuate above $1900/mt. At the tail of trading, President of the European Central Bank (ECB) Mario Draghi said the door to further interest rate cuts is still open, which lifted the euro from earlier lows and also drove base metals up. Coupled with short covering, LME began rebounding, but weak US equity markets still kept its upside space. In yesterday's trading session aluminium has touched the low of 105.25 after opening at 105.45, and finally settled at 106.45. For today's session market is looking to take support at 105.5, a break below could see a test of 104.6 and where as resistance is now likely to be seen at 107.2, a move above could see prices testing 107.9.
Aluminium trading range for the day is 104.55-107.85.
Aluminium gained as drop of June CPI to a two-and-a-half-year low in China has opened room for more monetary easing
China's aluminium imports increased 33.3 percent to 614,000 tonnes
Alcoa forecast growing demand in the aerospace and auto sectors will support the aluminium prices.