Aluminium settled down -0.91% at 124.95 in the wake of disappointing trade data from China which ignited concerns of slower Chinese growth. Meanwhile, a strong US dollar continued to pressure aluminium prices. Chinese Premier Li Keqiang said at the Davos Forum that employment is of top concern for the Chinese government. Market considered it a sign that the Chinese government will not introduce further stimulus for the foreseeable future, and worried China may fail to achieve the 7.5% growth target this year.

As of August, the country was closer to fulfilling employment goal for the whole year, meaning that the central government may not roll out more stimulus measures for the remainder of the year. This has fueled worries over demand from the world's top metals consumer, weighing aluminum prices down. Bank of England Governor Mark Carney said that the BOE may start to raise interest rates next spring and the timing of this move will be based largely on the wage growth. The European Union passed a new round of sanctions on Russia on Tuesday, but may delay the implementation of the sanctions.

Spain's government bond yields were up 17 basis points, the biggest intraday gain since the establishment of the European Union, as a result of the Catalonia's push for independence. China's trade surplus hit a record USD 49.83 billion in August, up 77.8% YoY, but imports fell 2.4%, indicating that the Chinese economy lacked impetus to grow amid sluggish domestic demand. Technically market is under long liquidation as market has witnessed drop in open interest by -1.41% to settled at 5575, now Aluminium is getting support at 124.1 and below same could see a test of 123.2 level, And resistance is now likely to be seen at 125.7, a move above could see prices testing 126.4.

Trading Ideas:

Aluminium trading range for the day is 123.2-126.4.

Aluminium ended with losses in the wake of disappointing trade data from China which ignited concerns of slower Chinese growth.

Meanwhile, a strong US dollar continued to pressure aluminium prices.

Aluminium daily stocks at Shanghai exchange came down by 1246 tonnes.