Aluminium yesterday traded with the negative node and settled -0.56% down at 107.50 as in the evening of August 29th, though the US released mixed economic data, a much higher-than-expected personal spending growth (0.8% compared with 0.5% expected) which indicated economic improvement in the US boosted market confidence and limited impact by hurricane “Irene” relieved investor worries including impact from China’s further tightening capital supply. As a result, US stock prices surged by over 2% with gold and US dollar declining and US dollar index falling by 0.04% to 73.68. However, the weak Dallas Fed Manufacturing Activity Index for August released Monday will weigh down LME copper prices, which will move between $8,980-9,100/mt during Tuesday's Asian trading hours. In domestic market, Chinese stock markets will open higher due to rising US equity markets on the previous trading day, but will continue to close down given cash flow pressures at the month's end. LME was closed on August 29th due to the summer bank holiday of the country. In yesterday's trading session aluminium has touched the low of 107.2 after opening at 108.1, and finally settled at 107.5. For today's session market is looking to take support at 107, a break below could see a test of 106.4 and where as resistance is now likely to be seen at 108.3, a move above could see prices testing 109.1.

Trading Ideas:

Aluminium trading range is 106.4-109.1.

Aluminium settled -0.56% down at 107.50 though the US released mixed economic data

LME was closed on August 29th due to the summer bank holiday of the country.

Aluminium daily stocks at Shanghai exchange came down by 2863 tonnes