Aluminium yesterday traded with the negative node and settled -0.72% down at 110.45 as manufacturing contractions in China, Europe and the US and lasting worries towards Greece's euro exit continued to weigh on markets. US April durable goods orders reported positive, though lower than expected, growth, helping base metals rebound. LME aluminum settled up slightly by USD 2.5/mt or 0.12% at USD 2,010/mt. The panic is gradually waning though real support is lacked. Aluminum prices will remain range-bound today. HSBC announced the flash China manufacturing PMI for May remained sluggish, and that export orders in the same month also hit a fresh two-month low. PMI data in other countries was also disappointing. Germany's PMI fell at the fastest pace in May in the past three years, and its Business Climate Index also fell in this month for the first time in seven months. The euro zone's private sector contracted further in May as new orders sunk, forcing firms to cut backlogs and slash workforces. The US manufacturing PMI also retreated in May, which was partly due to the fact that economic slowdown in Europe and China hurt exports. Besides, the US durable goods orders for April rose less than expected as companies scaled back plans to add machinery. For today's session market is looking to take support at 109.8, a break below could see a test of 109.1 and where as resistance is now likely to be seen at 111.3, a move above could see prices testing 112.2.

Trading Ideas:

Aluminium trading range for the day is 109.05-112.15.

Aluminium dropped as manufacturing contractions in China, Europe and US and lasting worries towards Greece's euro exit weighed

China's top aluminum-producing province has idled about 700,000 metric tons of capacity in recent months

LME aluminium drops under psychologically important $2,000/t level on eurozone concerns