Aluminium yesterday traded with the positive node and settled 1.56% up at 109.25 as it was reported overnight that the ECB is drafting a bond buying plan, which involves unlimited and sterilized purchases of government bonds maturing in three years or less, boosting market confidence in Thursday's ECB meeting to solve the European debt crisis The US dollar index fell as a result, pushing commodities to rebound. LME aluminum jumped to a two-month high of USD 1,970/mt, finally, LME aluminum ended the day up USD 26.5/mt or 1.37% to close at USD 1,963.5/mt. Aluminum prices will hover high as markets are focusing on the ECB meeting on Thursday. Investors were also waiting a US jobs report due on Friday. A soft report might strengthen the case for a third round of monetary easing, also known as quantitative easing (QE3), from the Federal Reserve at its September meeting. In yesterday's trading session aluminium has touched the low of 107.4 after opening at 107.45, and finally settled at 109.25. For today's session market is looking to take support at 107.9, a break below could see a test of 106.6 and where as resistance is now likely to be seen at 110.1, a move above could see prices testing 110.9.

Trading Ideas:

Aluminium trading range for the day is 106.58-110.88.

Aluminium gained on reports that European officials said ECB may buy unlimited amounts of government debt

US Labor Department announced revised non-farm productivity rose 2.2% in 2Q, better than market anticipations.

Moody's slashed Ireland's credit rating from Aaa to A3, and Portugal's credit rating from Aaa to Baa3