Copper is trading at 317 cents per pound, up 1.4% on the day after the official manufacturing figures from Beijing showed an increase in manufacturing in May. The reading exceeded expectations and came in at a five-month high.
Last week copper finished on a low note, but the announcement from China over the weekend gave traders the reason to go bargain hunting this trading session.
As I previously stated, there is still speculation that the People’s Bank of China will reveal some form of stimulus package in the near future, but the Chinese authorities may not wait until there is a string of poor economic indicators before revealing a monetary easing scheme.
The metal is rangebound between its 100-day moving average of 310 cents per pound and the 200-day moving average of 319 cents per pound, with the bias on the latter.