Copper eased in US trades after recording good gains earlier. The Dow ended flat as financials eased and overall focus shifted to the outcome of US FOMC meet on Wednesday. COMEX Copper hit one week high near $3.08 per pound as firm Chinese data boosted the mood. China’s industrial output rose 5.6% in August from a year ago, expanding for the fifth straight month in a boost to an economy trying to regain its footing from the shock of the coronavirus outbreak. In July, production rose 4.8%, as more businesses resumed production after Beijing managed to largely contain the epidemic and remove most of the nationwide virus curbs. Chinese retail sales rose 0.5% in August from a year ago, the first positive report for the year so far, China’s National Bureau of Statistics said Tuesday. Notably, sales of communication equipment rose 25.1% from a year ago and that of autos rose 11.8%. Retail sales for the first eight months of the year were down 8.6% from a year ago, the bureau said. China’s fixed-asset investment fell 0.3% year on year during the January-August period, with the decline narrowing from the 1.6% fall in the first seven months.
Shanghai base metals traded mixed on Wednesday morning, as investors await a monetary policy announcement from the US Federal Reserve. Meanwhile, their counterparts on the LME were mostly higher. US industrial production for August missed expectations, suggesting a slow recovery in industry production, which deepened market concerns. The US dollar index returned above 93 as the New York Fed’s Empire State business conditions index rose 13.3 points to 17 in September, far higher than expectations, which weighed on copper futures. Escalating US-China and China-India tensions deepened concerns among investors, which pressure copper prices. Copper prices are likely to fluctuate in rangebound in the short term.
TREND : WEAK BEARISH
Time : 16/09/2020
Pivot : 3.0547
Technical View : LONG ABOVE 3.0672
Target : 3.0797, 3.1021, 3.1242
Technical View : SHORT BELOW 3.0429
Target : 3.0312, 3.0111, 2.9867