30 Mar 2015
Copper bounces-off fresh weekly lows on Chinese stimulus bets
FXStreet (Mumbai) - Copper prices on Comex edged higher in the European session, rebounding from fresh one week lows reached in Asian trading, on increased bets that China may roll out additional stimulus in a bid to spur economic growth in the world’s biggest consumer of the red metal.
Copper: 2.80 in sight
The red metal trades higher at 2.784 levels, recording a 0.61% gain on the day, having previously posted fresh one week lows at 2.752. Copper prices extended gains after People's Bank of China (PBOC) Governor Zhou Xiaochuan’s comments raised expectations of further easing in China amid a slowdown in its manufacturing sector, boosting the demand for the industrial metal.
A preliminary reading for China’s manufacturing fell to an 11-month low in March while industrial profits fell 4.2% in January and February.
However, the upside in copper prices was restricted by a stronger dollar across the board. The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.36% on the day at 97.96, as of writing.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.80, above which gains could be extended to 2.809 levels. Meanwhile, support is seen at 2.748 levels, below which it can extend losses to 2.72 levels.
Copper: 2.80 in sight
The red metal trades higher at 2.784 levels, recording a 0.61% gain on the day, having previously posted fresh one week lows at 2.752. Copper prices extended gains after People's Bank of China (PBOC) Governor Zhou Xiaochuan’s comments raised expectations of further easing in China amid a slowdown in its manufacturing sector, boosting the demand for the industrial metal.
A preliminary reading for China’s manufacturing fell to an 11-month low in March while industrial profits fell 4.2% in January and February.
However, the upside in copper prices was restricted by a stronger dollar across the board. The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.36% on the day at 97.96, as of writing.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.80, above which gains could be extended to 2.809 levels. Meanwhile, support is seen at 2.748 levels, below which it can extend losses to 2.72 levels.