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New York
Friday, June 2, 2023

Copper market under short covering; Support seen at 408.8

Aluminium market under fresh buying; Support seen at 141.6

Nickel market under long liquidation; Support seen at 939.8

MCX Cotton under fresh buying; Support seen at 23334

MCX Cardamom under fresh buying; Resistance seen at 1363.5

Zinc market under fresh selling; Support seen at 166.2

Technically Copper market is under short covering and getting support at 408.8 and below same could see a test of 405.4 level, And resistance is now likely to be seen at 415.2, a move above could see prices testing 418.2.

Copper on MCX settled up 1.09% at 412.10 on short covering as support also seen as the dollar weakened, copper prices continued to rebound overnight with LME copper hitting a high of $6,033/mt.

Industrial metals got a lift from improving sentiment on China’s economy and a rise in the yuan. The Asian nation plans to send a delegation to the U.S. later this month, stoking hopes of a revival of trade talks.

Meanwhile, orders to withdraw copper from warehouses tracked by the London Metal Exchange climbed the most since 2015 on Monday. Metal prices plunged last week, sending the LMEX Index to a one-year low, as turmoil fueled by Turkey’s financial woes spread across emerging markets.

Currency moves have also set the direction for the market in recent weeks, with the stronger dollar and weaker Chinese yuan leading metal prices lower. Last night the US dollar index fell below 96 to the lowest in almost one week at 95.76 on Monday after US President Donald Trump scorned the Federal Reserve’s decision to raise interest rates.

Trump told Reuters he was “not thrilled” with Fed Chair Jerome Powell for the bumps to the federal funds rate. He said he would criticise the Fed if it continues to elevate the cost of borrowing.

Data from Euro zone reveled that the German PPI grew 0.2% from a month ago in July, in line with the expectations but slower than the 0.3% in June, while the annualised number remained unchanged at 3%. Now day ahead key thing to watch this week would be the upcoming US-China trade talks.      

Trading Ideas:
–Copper trading range for the day is 405.4-418.2.
–Copper climbed as appetite for risk revived on hopes of progress in a trade dispute between the world’s top two economies.
–Chile’s Antofagasta, one of the world’s leading copper producers, expects copper prices to continue to be volatile due to global trade tensions.
–The union representing workers of Chilean copper mine Escondida signed a new collective labor contract, ending the risk of a strike, easing supply concerns.

Courtesy: Kedia Commodities

Source: Commodityonline.com

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