Aluminium trading under pressure and settled -0.76% down at 104.85 as uncertainty the US Federal Reserve would launch more stimulus measures soured market sentiment, with prices in tight ranges on caution before China's GDP data. Support seen after the Alcoa chief financial officer update that aluminium prices should be trending up if the fundamentals are any indication. But his firm reported average aluminium realizations in the June quarter to be down by 4% sequentially and by 17.7% yoy. That has affected its performance, though factors such as currency movements, rising regional premiums, and productivity improvements were mitigating factors. A large producer of aluminium, the firm has multiple revenue streams, including basic products such as alumina and aluminium, and value-added ones under its global rolled products and engineered products divisions. Early with its results, Alcoa sets the tone for earnings expectations from industrial stocks, especially non-ferrous metal producers. An improvement in macro-economic variables or in the market’s mood may lead to a sharp turnaround in aluminium prices. But what if these two factors worsen? The China slowdown factor may sound repetitive and boring, but is relevant. For today's session market is looking to take support at 104.5, a break below could see a test of 104.1 and where as resistance is now likely to be seen at 105.4, a move above could see prices testing 105.9.

Trading Ideas:

Aluminium trading range for the day is 104.08-105.88.

Aluminium is the only base metal ended with weakness due short selling despite of drop in LME stocks by 11,800 mt

The apparent Fed disagreement on further economic stimulus reflected in its June interest rate meeting minutes

German's CPI was in line of expectations, and slowly falling CPI did not allow German to expand easing policies.