The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Copper is trading at 301 cents per pound, down 1.2% on the day, as traders secure their profits and square-up their up positions ahead of the trade balance and new loans report expected from Beijing overnight. Ordinarily, the trade balance data would be of more interest to traders as it highlights the level of imports and exports from the country. However, in light of the new credit concerns in China, the new loans report could take precedence.
As I previously mentioned, copper was driven higher last week after concerns that copper production in Chile would be hit as the nation was struck by an earthquake. The focus is now back on China; if the trade and loan figures from Beijing are weak then we could see copper extend its decline.
The 200-hour moving average of 303 cents per pound is acting as resistance. If copper drops below the psychological level of 300 cents per pound, we could approach the recent low of 297 cents per pound.