Aluminium settled up 0.41% at 109.65 underpinned by upbeat economic data from US zone. The euro rose against the greenback on rising Sentix investor confidence index in the euro zone in January. Factory orders in the US hit new high in November. The euro zone’s January Sentix investor confidence indicator rose to the peak of 11.9 in more than two years, topping the estimated 9.5 and last December’s 8. The final reading of the bloc’s December composite PMI reached a fresh three-month high of 52.1, while the PMI during the fourth quarter of 2013 also touched the highest quarterly level over the past two and half years. These encouraging economic reports all vindicated the euro zone’s positive economic recovery momentum during last December. In the US, the November factory orders rose 1.8% MoM to USD 497.9 billion, the highest since the record began in 1992, while the ISM PMI in non-manufacturing sectors settled at 53.0, below the expectation of 54.7 and November’s 53.9. Boosted by upbeat economic reports in the Europe, the euro bounced back against the US dollar. China’s December manufacturing PMIs announced by the National Bureau of Statistics (NBS) and HSBC missed forecasts, but did stay above 50.  technically market is under short covering as market has witnessed drop in open interest by -10.91% to settled at 1919 while prices up 0.45 rupee, now Aluminium is getting support at 108.7 and below same could see a test of 107.6 level, And resistance is now likely to be seen at 110.3, a move above could see prices testing 110.8.

Trading Ideas:

Aluminium trading range for the day is 107.6-110.8.

Aluminium recovered to end with gains underpinned by upbeat economic data from US zone

The four major PMI data for China fell in tandem for the first time since April 2013, rekindling concerns over China’s slowdown.

Aluminium daily stocks at Shanghai exchange came down by 50 tonnes