Aluminium on MCX settled down -0.81% at 104.45 amid holiday-thinned trade, and was set to log its weekly fall as China's economy shows signs of finding its feet. Chinese financial markets are closed from Thursday to Sunday for the Mid-Autumn Festival. From data point US retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods, pointing to cooling domestic demand that further diminishes expectations of a Federal Reserve interest rate increase next week. Overnight, prices sank to fresh lows as investors digested the release of a host of U.S. economic data. Data released earlier showed that retail sales in the U.S. declined for the first time in five months, fueling concerns over the economic outlook. The Commerce Department said that retail sales dropped 0.3% from the prior month, compared to the forecast for a decline of 0.1%. Core retail sales, which excludes automobile sales, unexpectedly fell by a seasonally adjusted 0.1% in August, compared to forecasts for an advance of 0.2%. A separate report released at the same time showed that wholesale prices were flat in August, mostly because of sharp declines in the cost of food and gasoline. Meanwhile, the number of people who filed for unemployment assistance in the U.S. last week rose less than expected, remaining in territory associated with a healthy labor market. Technically market is under fresh selling and getting support at 103.6 and below same could see a test of 102.8 level, And resistance is now likely to be seen at 105.7, a move above could see prices testing 107.

Trading Ideas:

Aluminium trading range for the day is 102.8-107.

Aluminium dropped as speculation about a U.S. rate hike this month prompted investors to shed risky assets.

Japanese manufacturers' confidence bounced from a three-year low, while sentiment in the services sector hit its lowest since 2013

China denies aluminium exports evading U.S. duties