Aluminium yesterday traded with the positive node and settled 0.18% up at 113.25 as support seen from the US November nonfarm payrolls increased by 146k and unemployment rate fell to 7.7%, its lowest since December 2008, helping commodity price rebound. However, a lack of progress over the US budget negotiations and the upcoming US Federal Reserve interest rate meeting helped the US dollar index stabilize at 80, curbing the gains of commodity prices. Also china’s economic data was negative in November, compared with positive nonfarm payrolls in the US. According to China’s National Bureau of Statistics on December 9th, China’s CPI for November increased by 2.0% YoY, rebounding from a 33-month low, suggesting that China’s economy is recovering. In addition, China’s industrial growth was also inspiring. According to data from the National Bureau of Statistics, China’s industrial growth for November was up 10.1% YoY, higher than 9.6% YoY in October and the highest since March 2012.The strong industrial profits suggested that the US manufacture industry is recovering. In yesterday's trading session aluminium has touched the low of 113 after opening at 113, and finally settled at 113.25. For today's session market is looking to take support at 113.1, a break below could see a test of 112.9 and where as resistance is now likely to be seen at 113.4, a move above could see prices testing 113.6.

Trading Ideas:

Aluminium trading range for the day is 112.85-113.55.

Aluminium prices seen supportive after US data showed unemployment rate fell to 7.7%.

A lack of progress over US budget negotiations and the upcoming US Federal Reserve interest rate meeting curbed gains.

China’s economic data was negative in November, compared with positive nonfarm payrolls in the US.