Aluminium yesterday traded with the positive node and settled 0.23% up at 106.55 as support seen after inews that interest rate cuts by Chinese and European central banks overnight were overshadowed by ECB President Mario Draghi’s pessimistic remarks towards the euro zone economy, pressing down the euro and pushing the dollar index near 83. LME aluminum started at $1,956.8/mt and closed down $11/mt, or 0.56%, at $1,945/mt, after slipping to $1,929/mt as the dollar strengthened. The rate cuts in China and Europe are meant to boost slowing economic growth, but also added to the appeal of the safe-haven dollar to weigh on base metals. The US non-farm payroll data today will exert a significant impact on the US dollar. In China, Shanghai aluminium was one of the session's best performers, with the most active Shanghai contact recovering 5.1% by the end of the day from a three-year low it posted last week as Chinese traders piled back in believing it was oversold. Despite problems of overcapacity in China, aluminium looks one of the most attractive to traders now among the industrial metals at these low price levels. For today's session market is looking to take support at 106.1, a break below could see a test of 105.7 and where as resistance is now likely to be seen at 107, a move above could see prices testing 107.4.

Trading Ideas:

Aluminium trading range for the day is 105.68-107.38.

Aluminium ended with gains after interest rate cuts by Chinese and European central banks

China's import premiums for Good Western aluminium firmed to $230-240/mt CIF.

Soaring aluminium premiums are particularly irksome for manufacturers because aluminium is in chronic oversupply.