Aluminium yesterday traded with the negative node and settled -0.76% up at 111.75 after Manufacturing data released on September 1st were disappointing in Europe, indicating difficulties to improve debt woes in the area, and even though China and US manufacturing data met market expectations, stagnating economic recoveries in the two countries still scared investors away to seek security with US dollar. As a result, the US dollar index surged overnight to 74.714, and LME aluminium prices were pressed down. The loss of LME aluminium prices was limited, however, due to energy attributes of the metal following slight gains of New York crude prices. The metal finally closed at USD 2,450/mt, down USD 21.8/mt or 0.88% from previous trading day. On Thursday, August’ PMI from Italy, France and Germany remained weak, while August’s ISM PMI from the US was far better than expectation, boosting the US equity market. In yesterday's trading session aluminium has touched the low of 107.55 after opening at 108, and finally settled at 108.5. For today's session market is looking to take support at 107.7, a break below could see a test of 106.9 and where as resistance is now likely to be seen at 109.2, a move above could see prices testing 109.9.

Trading Ideas:

Aluminium trading range is 110.7-112.8.

Aluminium dropped after Manufacturing data released on September 1st were disappointing in Europe

China and US manufacturing data met market expectations, stagnating economic recoveries in the two countries

Aluminium daily stocks at Shanghai exchange came down by 2360 tonnes