Copper flat ahead of China’s data

Copper is broadly unchanged on the day as traders wait for the Chinese manufacturing figures to be released overnight.

Copper is trading at 303 cents per pound. The latest reading came in at 48, which indicates a contraction in Chinese manufacturing, and the consensus is for the next is 48.4. If the figure is soft, we could see copper drift lower. China is a major copper importer and if traders feel their manufacturing sector is waning it could weigh on copper.

The health of the Chinese credit market is also being called into question; China’s yuan dropped to its lowest level against the US dollar in 14 months, and some foreign exchange traders felt the Chinese central bank was behind the move. If Chinese banks start to rack up bad debts and the liquidity pool starts to drain, it could also drag copper lower.

The 50-day moving average of 304 cents per pound is acting as resistance. A weak HSBC survey of Chinese manufacturing could push copper back below 300 cents per pound.

High grade copper chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.