Aluminium yesterday traded with the positive node and settled 2.62% up at 116.25 headed for its biggest daily rise since mid-November, as the U.S. Congress struck a deal to avert a fiscal disaster and upbeat China data indicating steady improvement in the world's top copper consumer also boosted prices. The U.S. Congress approved a tax increase for the nation's wealthiest households in a last-minute deal, ending the U.S. "fiscal cliff" crisis that threatened a U.S. recession and roiled world financial markets. The resolution that came after months of political wrangling sent Asian stocks to a five-month high, weighed on safe-haven dollar and boosted industrial metals that thrive on a better economic outlook.  While the global aluminium market is likely to see a larger surplus of 202,000 tonnes in 2013, up more than a fifth from this year, as rapid supply growth from China, the Middle East and India are expected to continue that can create pressure in coming day's. Also this week seen prices found additional support after official data Tuesday showed that China’s manufacturing Purchasing Managers’ Index expanded for the third consecutive month in December. In yesterday's trading session aluminium has touched the low of 113.15 after opening at 113.4, and finally settled at 116.25. For today's session market is looking to take support at 114.1, a break below could see a test of 112 and where as resistance is now likely to be seen at 117.4, a move above could see prices testing 118.5.

Trading Ideas:

Aluminium trading range for the day is 112.02-118.52.

Aluminum gained as upbeat China data indicating steady improvement boosted prices.

The global aluminium market is likely to see a larger surplus of 202,000 tonnes in 2013

Spanish manufacturing PMI was around expectations at 44.6, while the Italian equivalent at 46.7 beat the expected 45.4.