Aluminium settled up 0.99% at 111.85 as the market continued to absorb positive effects from Premier Li's statement. The Chinese Premier Li Keqiang revealed during a visit to Britain that the central government would ensure a 7.5% economic growth this year. Meanwhile, the US Federal Reserve signaled at the mid-year interest rate meeting that it would stick to accommodative monetary policy in the long run. In response, base metals prices recouped early losses during European and US trading hours, and went up. US initial jobless claims for last week were reported at 312,000, below the estimated 314,000. The Conference Board’s leading economic index rose by 0.5% MoM in May, beating April’s 0.4% increase. The Philadelphia Fed’s manufacturing index also jumped to 17.8 in June, faring better than May’s reading and expectations. Base metals traders are eyeing the aluminium price for a possible break above $1,900 per tonne this week, as its official price edged up towards that level on Thursday June 19. Base metals markets should continue to digest optimistic statements made by the Chinese Premier, and a weaker US dollar is also expected to lend some support to the markets on Friday.  Three-month aluminum on the London Metal Exchange slipped to USD 1,866/mt after opening at USD 1,871.8/mt on Thursday. The light metal, however, then bounced back to USD 1,891.8/mt before ending up USD 17.3/mt at USD 1,888.3/mt. Technically market is under short covering as market has witnessed drop in open interest by -5.99% to settled at 3264 while prices up 1.1 rupee, now Aluminium is getting support at 110.5 and below same could see a test of 109.1 level, And resistance is now likely to be seen at 112.7, a move above could see prices testing 113.5.

Trading Ideas:

Aluminium trading range for the day is 109.1-113.5.

Aluminium ended with gains as the market continued to absorb positive effects from Premier Li's statement.

The number of US initial jobless claims last week and Philadelphia Fed's June manufacturing index both topped market expectations, boosting market sentiment.

Aluminium daily stocks at Shanghai exchange came down by 2325 tonnes.