Aluminium settled up 1% at 106.45 as dollar index dropped due to disappointing economic data from US. US January retail sales unexpectedly dropped from a month ago, declining the most since June 2012, and Credit Suisse and Barclays both lowered forecasts for the nation’s Q4 GDP growth. The number of Americans filing new claims for unemployment benefits also rose as against previous level, and missed estimates. A slew of US economic data released overnight depressed markets to some extent. US retail sales unexpectedly fell by 0.4% from a month earlier during January, the biggest losses since June 2012, and December’s figures were also revised down. After the release of the retail sales, Barclays lowered its estimate for US Q4 GDP from 2.6% to 2.2%, and Credit Suisse cut its forecast for the nation’s Q1 GDP for 2014 to 1.6% from 2.6%. US initial jobless claims reached 339,000 last week, shy of expectations and preceding week’s level, indicating that the recovery of US labor market is still rocky. US shares responded to these economic reports mildly, and extended early gains, but the US dollar index dropped by 0.5%, easing pressure from downbeat economic data on base metals prices. The People’s Bank of China (PBOC) has not conducted open market operations this week, but instead withdrew a total of RMB 450 billion reverse repurchase agreements due. Technically market is under short covering as market has witnessed drop in open interest by -13.66% to settled at 3532 while prices up 1.05 rupee, now Aluminium is getting support at 105.4 and below same could see a test of 104.4 level, And resistance is now likely to be seen at 107, a move above could see prices testing 107.6.

Trading Ideas:

Aluminium trading range for the day is 104.4-107.6.

Aluminium gained as dollar index dropped due to disappointing economic data from US

A slew of US economic data released overnight depressed markets to some extent.

Aluminium daily stocks at Shanghai exchange came up by 225 tonnes