Aluminium settled down -0.14% at 108.5 despite European and the US economic reports released last week outperformed expectations. Consumer confidence index in the euro zone rallied in December, pushing the euro up while sending the greenback down. US GDP grew at a 4.1% annual rate in Q3, marking the largest growth since Q4 2011. The US Q3 real GDP growth was finalized at 4.1% YoY, its highest since Q4 2011 and well beyond the 3.6% expected. This was mainly driven by better-than-expected consumer spending. Personal consumption expenditure (PCE) price index in Q3 also outran the 1.4% estimate to 2.0% at an annualized rate. In Europe, final reading for UK's Q3 GDP growth was 1.9% YoY, higher than the 1.5% projection. GfK German consumer confidence index for January also advanced to its highest in nearly 6-1/2 years at 7.6. and the December French business confidence rose to 100, a high last seen in September 2011. The US dollar index fell after rising initially. In China, the People's Bank of China has injected over RMB 300 billion in the market via SLO last week, and excess reserves in banking system were above RMB 1.5 trillion. However, liquidity conditions remained unimproved, with major interest rates in money market staging a strong rebound after initial plunge last Friday to hit a new high since June's liquidity squeeze. Chinese stock market thus slumped over 2%. Now Aluminium is getting support at 108 and below same could see a test of 107.5 level, And resistance is now likely to be seen at 109.3, a move above could see prices testing 110.1.

Trading Ideas:

Aluminium trading range for the day is 107.5-110.1.

Aluminium ended with small losses despite European and the US economic reports released last week outperformed expectations.

Consumer confidence index in the euro zone rallied in December, pushing the euro up while sending the greenback down.

Aluminium weekly stocks at Shanghai exchange came down by 3820 tonnes