20 Jan 2015
Copper gains as China expands
FXStreet (Mumbai) - Copper futures on Comex rebounded in the mid-Asian session, snapping two back-to back sessions of losses as traders cheer upbeat Chinese growth numbers.
The red metal trades now at USD 2.596/ pound, up 0.76% on the day, close to intraday high at 2.599 levels hit earlier in the session. Copper rebounded today after Chinese economy expanded 7.3% last quarter coming in stronger than the market estimate of 7.2% growth. Moreover, industrial output and retail sales figures for December each surpassed forecasts, rising by 7.9% and 11.9% respectively, y/y. Copper prices were lifted after the upbeat raised expectations of revival in demand for the industrial metal from the world’s top consumer, China. China accounts for nearly 40% of the world’s copper demand.
However, reports that the International Monetary Fund (IMF) in its latest global growth outlook cut China’s 2015 growth forecast to 6.8% may restrict the upside in copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.628 (Jan 19 high), above which gains could be extended to 2.634 (Jan 16 High) levels. Meanwhile, support is seen at 2.541 levels, below which it can extend losses to 2.517 levels.
The red metal trades now at USD 2.596/ pound, up 0.76% on the day, close to intraday high at 2.599 levels hit earlier in the session. Copper rebounded today after Chinese economy expanded 7.3% last quarter coming in stronger than the market estimate of 7.2% growth. Moreover, industrial output and retail sales figures for December each surpassed forecasts, rising by 7.9% and 11.9% respectively, y/y. Copper prices were lifted after the upbeat raised expectations of revival in demand for the industrial metal from the world’s top consumer, China. China accounts for nearly 40% of the world’s copper demand.
However, reports that the International Monetary Fund (IMF) in its latest global growth outlook cut China’s 2015 growth forecast to 6.8% may restrict the upside in copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.628 (Jan 19 high), above which gains could be extended to 2.634 (Jan 16 High) levels. Meanwhile, support is seen at 2.541 levels, below which it can extend losses to 2.517 levels.