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16 Dec 2014
Comex Copper trades flat after weak China PMI data
FXStreet (Mumbai) - Copper futures trades moderately higher in the mid-Asian session, reversing losses seen after the release of downbeat Chinese Manufacturing Index.
The red metal now trades modestly flat at USD 2.872/ pound, up 0.06% on the day, after having hit a low of USD 2.865/ pound in the Asian morning. Although, copper prices gained slightly, the red metal still remains exposed to downside risk after Chinese manufacturing activity gauge contracted for the first time since May, highlighting slowdown in economic growth in China, world’s top consumer of the metal. HSBC's flash PMI eased to 49.5 in December from last month's final reading of 50.0. The reading comes just days after data showed industrial output from the world's second-largest economy growing at the second slowest pace in five years in November.
Moreover, weak US Empire state manufacturing index released yesterday may also weigh on copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.89 (20-day SMA), above which gains could be extended to 2.917 (Dec 1 High) levels. Meanwhile, support is seen at 2.864 (Dec 15 Low), below which it can extend losses to 2.844 (Dec 2 Low) levels.
The red metal now trades modestly flat at USD 2.872/ pound, up 0.06% on the day, after having hit a low of USD 2.865/ pound in the Asian morning. Although, copper prices gained slightly, the red metal still remains exposed to downside risk after Chinese manufacturing activity gauge contracted for the first time since May, highlighting slowdown in economic growth in China, world’s top consumer of the metal. HSBC's flash PMI eased to 49.5 in December from last month's final reading of 50.0. The reading comes just days after data showed industrial output from the world's second-largest economy growing at the second slowest pace in five years in November.
Moreover, weak US Empire state manufacturing index released yesterday may also weigh on copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.89 (20-day SMA), above which gains could be extended to 2.917 (Dec 1 High) levels. Meanwhile, support is seen at 2.864 (Dec 15 Low), below which it can extend losses to 2.844 (Dec 2 Low) levels.