Aluminium yesterday traded with the negative node and settled -0.05% down at 105.55 tracking LME aluminum which lost a heavy $44.3/mt or 2.28% to $1,900/mt on Friday, though recovering a little from the intraday low of $1,894/mt, as less-than-expected increases in non-farm payrolls in the United States in June pushed up risk aversion to induce short selling. Latest LME aluminum stocks were up 9,200 mt at 4,818,725 mt. China will deliver its June economic data today, so trading should be cautious, but also slightly bearish today. LME aluminum should meet heavier pressure at $1,900/mt and move between $1,845-1,905/mt. Last week US Department of Labor released July 6 the non-farm payrolls for June were up 80k after seasonal adjustment, lower than expected 90k. The preliminary and revised growth for May was 69k and 79k respectively, while preliminary and revised rises were 77k and
68k in April. US unemployment rate was 8.2% in June, remaining flat from May and within market expectations. US non-farm payrolls in June were only up slightly with growth lower than expected, indicating the slowing US economic growth. As a result, risk appetite was lowered and investors turned to US dollar for safe haven, dragging down base metals. Market should focus on China’s CPI data on Monday. For today's session market is looking to take support at 105.5, a break below could see a test of 105.4 and where as resistance is now likely to be seen at 105.6, a move above could see prices testing 105.7.

Trading Ideas:

Aluminium trading range for the day is 105.42-105.72.

Aluminium seen flat to weak as less-than-expected increases in U. S non-farm payrolls pushed up risk aversion

China's annual consumer inflation cooled to 2.2 percent in June, from May's 3.0 percent, official data showed

Aluminium weekly stocks at Shanghai exchange came down by 6098 tonnes