Zinc yesterday traded with the positive node and settled 0.19% up at 104.7 yesterday LME Zinc prices once dipped to USD 2,070/mt ahead of manufacturing PMI for major economies was better than expected, with European economic data showing the manufacturing activity is improving.
Meanwhile, US economic data shows that the employees in US private sector grew steadily, and construction spending increased as well.
As a result, LME zinc prices climbed gradually to above the 10dma, with prices finally closing at USD 2,117.5/mt, up USD 12.5/mt. January PMI announced by global major economies was better than market expectation, indicating that global economy is recovering.
The US PMI announced by ISM was 54.1, and the PMI was 50.5 from China, 51.0 from Germany, indicating expansion of manufacture activities.
In addition, the US private sector payrolls for January increased by 170,000, in line with market expectation.
The global manufacture data and the US employment data both advanced, boosting market expectation over demand for industrial commodities and risk appetite.
For today's session market is looking to take support at 103.4, a break below could see a test of 102 and where as resistance is now likely to be seen at 105.7, a move above could see prices testing 106.6.
Trading Ideas:
Zinc trading range is 102-106.6.
Zinc gained with European economic data showing the manufacturing activity is improving
US economic data shows that employees in US private sector grew steadily, and construction spending increased as well
Workers at Peruvian miner Milpo's El Porvenir Zinc and Lead unit ended a strike after six days off the job
Courtesy: Kedia Commodities
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