Aluminium settled down -1.61% at 107 as a strong dollar and concerns about economic recovery in China were offset by expectations for strong U. S. growth. The latest figures offered investors reassurance that the Federal Reserve's decision to taper its asset buying was justified by fundamentals. Minutes of the Fed's December meeting and the ADP private sector jobs report are due later and will be closely watched for clues on the tapering outlook. Still, metals is struggling to gain traction, having hit its lowest in nearly two weeks on Monday on worries about growth in top consumer China, where the government has issued new rules to strengthen regulation of shadow-bank lending. Euro zone unemployment was unchanged at a record high for the eighth month in a row in November, but retail sales made the biggest monthly jump in 12 years, leaving European shares near 5-1/2 year highs, helped also by receding borrowing costs in the zone's periphery. In China, annual economic growth likely slowed a touch in the fourth quarter, a Reuters poll showed, confirming market views that the world's second-largest economy lost some vigour as Beijing shifts its focus to reforms. On Friday, all eyes should be focused on the US nonfarm payroll report. Technically market is under fresh selling as market has witnessed gain in open interest by 21.01% to settled at 2419 while prices down -1.75 rupee, now Aluminium is getting support at 106.5 and below same could see a test of 105.8 level, And resistance is now likely to be seen at 108.3, a move above could see prices testing 109.4.

Trading Ideas:

Aluminium trading range for the day is 105.8-109.4.

Aluminium dropped after upbeat jobs data increased expectations that the U. S. Federal Reserve could scale back its economy stimulus programme

The Fed's massive bond-buying programme has been a major driver for global risk assets such as metals in the past few years.

Aluminium daily stocks at Shanghai exchange came down by 150 tonnes