Aluminium yesterday traded with the positive node and settled 0.09% up at 111.3 support by the gains in January manufacturing indexes of China, Europe and the US boosted market confidence and in turn dragged the US dollar index below 79 overnight, helping LME aluminum breaking through the 5-dma and closing USD 23/mt or 1.02% higher at USD 2,271/mt. LME aluminum prices have been volatile this week as the European debt crisis remains unsolved and US employments, which are expected to considerably trail estimate, may erode support from gains in PMI data of major economies. The US and European markets continued to digest positive manufacturing figures out of China, Germany and the euro zone area Wednesday. The first growth in German manufacturing in four months and an unexpected expansion in China's manufacturing sector in January boosted investor risk appetites. However, market attention at the tail of trading shifted to Friday's US non-farm payrolls, which were expected to be pessimistic since the ADP employment data came in softer than markets anticipated. For today's session market is looking to take support at 110.1, a break below could see a test of 109 and where as resistance is now likely to be seen at 112.2, a move above could see prices testing 113.2.

Trading Ideas:

Aluminium trading range is 109-113.2.

Aluminium yesterday traded with the positive node support by the gains in January manufacturing indexes of China

Japan Aluminum Association announced Japanese rolled aluminum output decreased by 3.4% to 1.989mts.

Aluminium daily stocks at Shanghai exchange came up by 149 tonnes