Aluminium yesterday traded with the negative node and settled -0.65% down at 108.50 despite of strong euro on expectations Spain would seek a bailout to rescue its economy, although gains were capped by uncertainty about global growth, while trading volumes were low as China remained on holiday. In the last few weeks central banks in the United States, European Union and Japan have moved to loosen their monetary policy, in an attempt to stimulate economic growth. This boosted prices of commodities deemed riskier, including industrial metals. The euro rose against the dollar, with investors keeping a close eye on possible financial aid for Spain as the ECB left interest rates unchanged at its latest meeting. Trading volumes were thin as China is still on a public holiday. Investors are likely to look ahead to non farm payrolls data from the United States, due on Friday, for indications of a recovery in the country's labour market. Sentiment surrounding the U.S. labour market was boosted in the previous session after data showed private sector hiring rose by a better-than-expected number in September. Activity in the vast services sector also picked up, suggesting the economy remained on track for modest growth. In yesterday's trading session aluminium has touched the low of 108.4 after opening at 109, and finally settled at 108.5. For today's session market is looking to take support at 108.1, a break below could see a test of 107.7 and where as resistance is now likely to be seen at 109.2, a move above could see prices testing 109.8.

Trading Ideas:

Aluminium trading range for the day is 107.73-109.83.

Aluminium dropped despite of strong euro on expectations Spain would seek a bailout to rescue its economy

Sentiment surrounding U.S. labour market was boosted in previous session after data showed private sector hiring rose

The supportive low interest rate environment and backdrop of further monetary stimulus made further price gains inevitable