Zinc yesterday traded with the negative node and settled -2.39% down at 102.4 tracking LME zinc prices which inched down as of the morning session during Asian trading hours, dragged down by the rising US dollar index. As investors were cautious ahead of new US non-farm employment data, US stocks lost momentum after a rise of four consecutive days, with the DJIA ending down 1%.
LME zinc prices overnight fluctuated between USD 2,220-2,230/mt, as European and American markets overnight continued to digest China's official manufacturing PMI data, but traders saw signs of problems for the country's future export growth.
Meanwhile, from the PMI data released by some Euro-zone countries, the mfg activity in the Euro-zone area for August suffered contraction due to significant drops in manufacturing output and new orders for the first time in nearly two years, stoking market concerns about the health of global economy.
Besides, investors kept cautious before the release of the US employment data on Friday, propelling LME copper prices to move upward and test the support at USD 9,100/mt during the trading hours. At the tail of trading, data released by the US ISM showed the US ISM manufacturing index was 50.6 in August, better than market expected. For today's session market is looking to take support at 101.5, a break below could see a test of 100.6 and where as resistance is now likely to be seen at 103.9, a move above could see prices testing 105.3.
Trading Ideas:
Zinc trading range is 100.6-105.3.
Zinc yesterday traded with the negative node tracking LME zinc prices dragged down by the rising US dollar index.
Investors hope for quantitative easing in the U.S.
PMI data saw signs of problems for the country's future export growth.
Courtesy: Kedia Commodities
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