Aluminium yesterday traded with the negative node and settled -0.67% down at 103.35 by a fall in the euro after weak euro zone economic data renewed fears about the region's growth prospects. Growth in China's vast manufacturing sector picked up in March, a preliminary survey of factory managers showed, pointing towards solid but not spectacular first-quarter growth in the world's second-largest economy. The HSBC Purchasing Managers' Index for China revived to 51.7 in March, from 50.4 in February, on the back of stronger new orders and production growth. Weighing on prices, however, was a drop in the euro against the dollar after weaker-than-expected German activity data prompted caution over the outlook for growth. Cyprus' uncertain financial condition remained on the radar, with the European Central Bank giving Cyprus until Monday to raise billions of euros to clinch an international bailout or face losing emergency funds for its crippled banks and inevitable collapse. In China, the HSBC's China initial manufacturing PMI for March was 51.7, higher than 50.8 expected and previous reading of 50.4, the highest in two months, suggesting that China's manufacturing PMI is slightly improving. China's central bank continued 28-day RMB 48.1 repos operation through open market on Thursday, and the bidding rate stabilized around 2.75%. China's central bank recovered RMB 47 billion liquidity this week, and recovered total RMB 964 billion of liquidity over the past four weeks. Currently, liquidity was still ample in the market and the Shibor continued to lower. In yesterday's trading session aluminium has touched the low of 103.05 after opening at 104.5, and finally settled at 103.35. For today's session market is looking to take support at 102.7, a break below could see a test of 102.1 and where as resistance is now likely to be seen at 104.4, a move above could see prices testing 105.4.

Trading Ideas:

Aluminium trading range for the day is 102.05-105.35.

Aluminium dropped by a fall in the euro after weak euro zone economic data renewed fears about the region's growth prospects

Growth in China's vast manufacturing sector picked up in March, a preliminary survey of factory managers showed.

Weighing on prices, however, was a drop in the euro which widened losses against the dollar