Aluminium settled flat at 105.10 as market sentiment is expected to improve in limited manner in the first trading day after the week-long New Year holiday, and attention should be on US nonfarm payrolls due for release late Friday. The European Central Bank (ECB) and Bank of England (BOE) both kept their monetary policies unchanged on Thursday. The euro, however, rose sharply, benefiting from comments by the ECB in its press conference. The BOE's decision to maintain its interest rate matched forecasts, but that of the ECB stoked controversies in markets. Markets have high expectations that the ECB will take some measures since the euro zone's inflation continued to decline and its unemployment remained lofty. In its subsequent press conference, the ECB just announced as usual that it would stand ready to take some measures to cope with inflation. US initial jobless claims for last week released overnight were 331,000, less than the estimated 335,000, boosting market sentiment hurt by downbeat ADP employment and fueling hopes of positive US nonfarm payrolls. US shared rebounded considerably, aided by these encouraging economic data. Global shares closed with gains, and LME base metals prices were up, except for LME tin prices . Attention should be focused on US nonfarm payrolls on Friday. Buoyed by last week's encouraging initial jobless claims and ISM manufacturing PMI, the nonfarm payrolls are anticipated to be positive. In addition, the return of Chinese investors from the New Year holiday will also help boost metals markets. Technically market is getting support at 104.6 and below same could see a test of 103.9 level, And resistance is now likely to be seen at 105.8, a move above could see prices testing 106.3.

Trading Ideas:

Aluminium trading range for the day is 103.9-106.3.

Aluminium settled flat as investors worried about weak demand in China and about the adjustment of Chinese market to a London prices when it reopens on Friday.

Also recent soft Chinese factory data has prompted caution about the outlook for economic growth

Continuing jobless claims in the week ended January 25 rose to 2.964 million from 2.949 million in the preceding week.