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4 May 2015
Copper fell from five-month high
FXStreet (Mumbai) - Copper fell from the five-month high of USD 2.932/pound seen on Friday on concerns of a slowdown in the economic activity in China.
Earlier today, the data showed the China's factories suffered their fastest drop in activity in a year last month. China's HSBC final manufacturing purchasing managers' index slipped to 48.9 in April, down from a preliminary reading of 49.2 and compared to 49.6 in the previous month. The dismal data triggered a chatter of more stimulus from China. However, the red metal weakened to a low of USD 2.8905/pound before recovering slightly to USD 2.9045.
Ahead in the data, the US factory orders data could influence the red metal. In the week ahead, investors will be focusing on Friday’s US nonfarm payrolls report for April.
Copper Technical Levels
The immediate resistance is located at 2.932 (50-WMA), above which gains could be extended to 3.0654 (100-WMA). On the flip side, a break below 2.86 could drive the metal lower to 2.819 (5-DMA).
Earlier today, the data showed the China's factories suffered their fastest drop in activity in a year last month. China's HSBC final manufacturing purchasing managers' index slipped to 48.9 in April, down from a preliminary reading of 49.2 and compared to 49.6 in the previous month. The dismal data triggered a chatter of more stimulus from China. However, the red metal weakened to a low of USD 2.8905/pound before recovering slightly to USD 2.9045.
Ahead in the data, the US factory orders data could influence the red metal. In the week ahead, investors will be focusing on Friday’s US nonfarm payrolls report for April.
Copper Technical Levels
The immediate resistance is located at 2.932 (50-WMA), above which gains could be extended to 3.0654 (100-WMA). On the flip side, a break below 2.86 could drive the metal lower to 2.819 (5-DMA).