Aluminium settled down -1.22% at 113.15 as the US dollar index retreated from 82 after tensions over the Syrian war crisis eased. While positive effect from upbeat Chinese economic data and mitigation in the Syrian war crisis was dwarfed by worries over a possible taper-off of QE3 by the US Fed. Russia and Syria proposed that chemical weapons should be under international control, which may leave the US to postpone military strike on Syria. Investors stayed out of the market ahead of the FOMC's two-day meeting due next week. Syrian issue overnight eased. Due to objections of US Congress, Senate majority leader postponed a vote on Wednesday. This means the Obama's effort to receive approval by the Congress to attack Syria failed. Russia made a proposal immediately as United States Secretary of State Kerry said if Syria transfer chemical weapons, a military attack can be avoid, and Syrian President Bashar al-Assad said they were willing to transfer chemical weapons. Global oppositions against the war increased, and this set a hurdle for Obama to push the war against Syria. Gold, crude oil prices and the US dollar index all dropped. Economic data from China was positive, but did not affect the market significantly. Annualized value added at large industries in August rose by 10.4%, higher than 9.7% in July; annualized consumer goods retail sales rose by 13.4%, higher than both expectations and July; power generation was 498.7 billion KWH, up 13.4% YoY, higher than the 8.1% growth in July. But base metals market was not boosted due to existing market concerns. Technically market is getting support at 112.3 and below same could see a test of 111.3 level, And resistance is now likely to be seen at 114.6, a move above could see prices testing 115.9.

Trading Ideas:

Aluminium trading range for the day is 111.3-115.9.

Aluminium settled down as the US dollar index retreated from 82 after tensions over the Syrian war crisis eased.

Positive effect from upbeat Chinese data and mitigation in Syrian war crisis was dwarfed by worries over a possible taper-off of QE3 by Fed

Aluminium daily stocks at Shanghai exchange came down by 1848 tonnes