Aluminium yesterday traded with the negative node and settled -1.21% down at 115.55 after the Federal Reserve overnight, manufacturing index in New York was -10.41, contracting more than forecasts, pushing up the US dollar index. In response, LME aluminum was pressured and extended losses the trading volumes contracted by half, but positions increased by more than 9,000 lots due to short selling. Aluminum prices will continue to correct. Fitch Ratings expects base metals producers to focus on cost control and productivity rather than volume growth or expansion over the next 12-18 months as demand growth moderates. In a new report published today, Fitch details its expectations for the copper, aluminum, nickel and zinc markets and profitability for producers thereof. China's demand continues to dominate, and efforts to curb property speculation  and inflation have resulted in slowing industrial production and metals demand. Demand recovery in the developed markets has slowed from earlier expectations. In yesterday's trading session aluminium has touched the low of 115.3 after opening at 116.6, and finally settled at 115.55. For today's session market is looking to take support at 115, a break below could see a test of 114.5 and where as resistance is now likely to be seen at 116.3, a move above could see prices testing 117.1.

Trading Ideas:

Aluminium trading range for the day is 114.52-117.12.

Aluminium dropped as manufacturing index was -10.41, contracting more than forecasts, pushing up the US dollar index

There was report European banking union plan may be postponed, resulting in cautious activity on the financial market.

Chinese economic activity worried investors that China's central bank is unlikely to adopt measures to boost economy