Aluminium settled -0.41% down at 108.55 as pressure seen on unimproved domestic metal consumption after the Chinese holidays and downbeat manufacturing PMI for September exacerbated concerns over China’s economic slowdown. Furthermore, worries over the European debt crisis grew as no progress has been made in providing aid to the Spain. LME aluminum prices sank to a low of $2,071/mt overnight and resistance at $2,100/mt was turning stronger. LME aluminum lacked upward momentum necessary to rebound due to short selling. Aluminum prices are expected to move weakly due to apprehension over the global economic slowdown. Investors will eye China's third quarter growth data at the end of next week, which market expect to show the weakest three months of the year. China is also expected to announce export-import data for September on Saturday. Adding pressure to metals prices was a fall in the euro against the dollar, as investors grew cautious ahead of the Q3 earnings season. A weak euro makes dollar-priced metal more costly for European and other non-US investors. The dollar rallied on Friday after data showed the US unemployment rate fell to a near four-year low in September, though the numbers also sparked worries that the Fed's QE programme might end prematurely. For today's session market is looking to take support at 107.9, a break below could see a test of 107.3 and where as resistance is now likely to be seen at 109, a move above could see prices testing 109.5.

Trading Ideas:

Aluminium trading range for the day is 107.25-109.45.

Aluminium dropped as unimproved domestic metal consumption after China holiday and downbeat manufacturing PMI weighed

Worries over the European debt crisis grew as no progress has been made in providing aid to the Spain.

In China, traders returned to the market from a week-long national holiday to find few signs of demand improving.