Aluminium extends its dollar-induced losses touching its lowest level in a month

Despite optimism over a rebound in the U.S. economic growth that overshadowed a stronger dollar resulting in slight uptick in commodity prices, aluminium extended its slide, touching its lowest level in a month on persistent worries about oversupply.

"We should see a bit more caution setting in. We are testing longer-term moving average support for many of the metals, particularly copper. So we're at a critical juncture and from here it is very much data dependent," said Robin Bhar, head of metals research at Societe Generale in London.

More data from top metals consumer China, including industrial production, is due next week.

April retail sales recorded their biggest increase in a year, suggesting the economy is regaining momentum, and U.S. consumer sentiment rose to the highest levels since June last year. The dollar hit a two-week high against a basket of currencies, chalking up its best fortnightly performance since February.

A strong dollar usually weighs on commodities priced in the U.S. currency, making them more expensive for buyers outside of the United States. Prices have dropped more than 8 percent already in May and chalked up a second consecutive weekly loss.

Aluminium ended 0.6 percent down at $1,535.50 a tonne after touching $1,531, the weakest since April 13.

Investors have been worried about reports that many Chinese smelters were reversing production cutbacks after prices rebounded, which would add to a global surplus.