Aluminium settled down -0.05% at 106.95. The US nonfarm payroll rose by 74,000 in December, well below the expectations and presenting the smallest increase since January 2011. November's data were revised to 241,000. The US unemployment rate dropped to 6.7% in December, its lowest since October 2008 and compared with the 7.0% forecast. Although the job data were believed to be hit by adverse weather, expectations that the Fed may be more cautious towards QE tapering strengthened. Investors were optimistic on the nonfarm payrolls since ISM PMI data and ADP employment, as well as initial jobless claims were strong, but the results fell significant short of estimates. That said, jobless data dropped sharply to 6.7% due to lower labor force participation rate. In response, the US dollar index slumped, losing 0.36%, allowing commodities to advance. Weak nonfarm payroll data, though partially caused by bitter cold, indicated unstable recovery in labor market, adding to uncertainty surrounding pace of QE tapering. In China, the trade surplus shrank in December, but imports increased noticeably. China's unwrought copper and copper semis imports grew by 29.3% YoY in December, while unwrought aluminum and aluminum semis imports soared by 89.4%, easing concerns over waning metal demand in China. That, combined with stockpiling before the Chinese New Year holiday, helped underpin metals prices. In Europe, economic data from the UK were poor, with November industrial, manufacturing and construction output all lagging forecasts. The euro zone final Q3 GDP growth held steady at 0.1%, and French industrial production rose by 1.3% in November. Now Aluminium is getting support at 106.4 and below same could see a test of 105.9 level, And resistance is now likely to be seen at 107.5, a move above could see prices testing 108.1.

Trading Ideas:

Aluminium trading range for the day is 105.9-108.1.

Aluminium settled flat as investors were optimistic on the nonfarm payrolls since ISM PMI data and ADP employment

In China, the trade surplus shrank in December, but imports increased noticeably.

Aluminium weekly stocks at Shanghai exchange came up by 6710 tonnes