Aluminium settled up 1.66% at 110.20 as trader looked ahead to a raft of Chinese economic data this week, including reports on gross domestic product, industrial production and retail sales. Economic data from the US and Europe released last Friday turned out mixed. The US housing starts dropped by 9.8% MoM in December, the biggest decline since April 2013. Building permits totaled 986,000 in December, below the 1.01 million expected. The University of Michigan Consumer Confidence Index for January was only 80.4, trailing the 83.5 forecast, and presenting the biggest gap between actual reading and expectation in eight months. These data, however, did not result in a weaker US dollar, with the currency still gaining 0.42%. In the US stock markets, the Dow maintained an upward trend. In China, the People's Bank of China (PBOC) decided at a conference held January 17 that it will focus on creating a stable financial circumstance for China's economic reforms this year. Besides, improvements in financing and lending system are also among the major tasks for 2014, so that the financial market will benefit growth in real economy. Traders are eyeing on the Fed which is scheduled to meet January 28-29 to review the economy and assess policy. Technically market is under fresh buying as market has witnessed gain in open interest by 2.33% to settled at 2462 while prices up 1.8 rupee, now Aluminium is getting support at 108.7 and below same could see a test of 107 level, And resistance is now likely to be seen at 111.2, a move above could see prices testing 112.

Trading Ideas:

Aluminium trading range for the day is 107-112.

Aluminium ended with gains after data from US showed industrial output in December rose.

New housing starts in December saw its sharpest decline since April 2013 and building permits fell 3% in December.

Aluminium weekly stocks at Shanghai exchange came up by 1961 tonnes