Aluminium yesterday settled unchange at 103.75 recovered from the day's low after the People's Bank of China (PBOC) said yesterday it will closely monitor short-term liquidity crunch, easing market worries. This helped China's A-shares rebound following sharp declines earlier. The US durable goods orders rose 3.6% MoM in May. Home prices in major cities in the US grew 12.1% in April. Meanwhile, US Consumer Confidence Index advanced to 81.4 in June, the highest since January 2008. These positive data suggest sustained recovery in the US economy, but also pushed the US dollar index up. LME aluminum inventories broke through 5.445 million mt overnight, keeping aluminum prices in check. LME aluminum rose to USD 1,775/mt and was then pushed up by strong US economic indicators to USD 1,801.5/mt. However, LME aluminum pared gains at the tail of session due to sell-off at highs, and finally closed up USD 8/mt or 0.45% at USD 1,778/mt. LME aluminum inventories increased 4,950 mt to 5,445,275 mt, but positions decreased 850 lots to 759,236 lots. The light metal will climb mildly as market concerns eased. Prices of the industrial metal have been under heavy selling pressure in recent sessions as a combination of concerns over a deepening slowdown in China and fears over an end to the Federal Reserve's asset purchase program weighed. Technically market is under long liquidation as market has witnessed drop in open interest by -13.14% to settled at 3788 while prices remain unchange, now Aluminium is getting support at 102.85 and below same could see a test of 101.95 level, And resistance is now likely to be seen at 104.8, a move above could see prices testing 105.85.

Trading Ideas:

Aluminium trading range for the day is 102-105.9.

Aluminium settled flat after PBOC said it will closely monitor short-term liquidity crunch, easing market worries.

US Consumer Confidence Index advanced to 81.4 in June, the highest since January 2008.

PBOC Says It Will Ensure Stability of China Money Market