Shanghai base metals traded lower for the most part on Thursday morning as the dollar held onto overnight gains, while their counterparts on the LME rose for the most part as investors await US jobless claims data set to release today. China’s services sector sustained recovery in August, an industry survey showed on Thursday, with companies hiring more employees for the first time since January. The US dollar index, which measures the greenback against a basket of its peers, extended gains, weighing on base metals. Spot premiums are expected to rise slightly as trades turned active in the spot market as copper prices plummeted.
Copper eased from 27 month high but losses were capped as US equities rose. US economic cues were also firm. Payroll processor ADP said US private sector employment increased by 428,000 jobs in August after rising by an upwardly revised 212,000 jobs in July. The Commerce Department said factory orders jumped by 6.4% in July, matching the upwardly revised spike seen in June. Economic activity in the U.S. has increased over the past several weeks, according to the Federal Reserve’s Beige Book, although the gains were described as generally modest. The Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, also noted economic activity remains well below levels prior to the COVID-19 pandemic. This kept the red metal afloat and the commodity currently trades at $3.02 per pound, down marginally on the day.
TREND : WEAK BEARISH / SIDEWAYS
Time : 03/09/2020
Pivot : 2.9941
Technical View : LONG ABOVE 3.0079
Target : 3.0217, 3.0386, 3.0632
Technical View : SHORT BELOW 2.9851
Target : 2.9762, 2.9526, 2.9347