Copper yesterday settled at 428.20 futures fluctuated between small gains and losses, as investors digested conflicting data out of China and the U. S., the world's two biggest consumers of the industrial metal. China's HSBC PMI for the services industry for July released earlier read 51.3, unchanged from June's reading, while the official government reading for non-manufacturing PMI in July released over the weekend was 54.1 compared with 53.9 in June. Market players now looked ahead to data scheduled later in the week on China's trade balance as well as a report on inflation and industrial production, amid ongoing concerns over the Asian nation's economic outlook. Despite China's weak factory data and a credit crunch, spending on the power grid and other areas has meant copper consumption is fairly buoyant in the world's biggest metals consuming nation. Market players now looked ahead to the Institute for Supply Management's non-manufacturing index later Monday to further gauge the strength of the U. S. economy. Investors have closely been looking out for U. S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases. The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Technically market is under long liquidation as market has witnessed drop in open interest by -2.76% to settled at 21944 while prices remain unchange0 rupee, now Copper is getting support at 425.9 and below same could see a test of 423.6 level, And resistance is now likely to be seen at 429.6, a move above could see prices testing 431.
Trading Ideas:
Copper trading range for the day is 423.6-431.
Copper prices edged lower after service sector data from China failed to lift expectations for demand in China.
China's HSBC Purchasing Managers' Index for the services industry for July released earlier read 51.3, the same reading as June.
Market direction is likely to be dictated by further data from China this week, which is expected to confirm that the economy is still shifting down
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