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China Manufacturing PMI Falls
Copper prices are in the green today but are struggling to break back above local resistance on the back of weaker-than-forecast Chinese manufacturing data overnight. The Chinese manufacturing PMI for last month was seen falling back into negative territory at 49.5 down from 50.2 prior and expected. The data puts emphasis back on the economic difficulties in China at the moment as the post-pandemic recovery continues to struggle.
Chinese Property Sector Concerns
Commodity prices have struggled recently against a higher US Dollar and ongoing issues within the Chinese property sector. Country Garden last week defaulting on a $500 million bond payment has raised fresh fears over the risk of a wider issue developing should Country Garden collapse. Coming on the back of better-than-forecast growth figures for Q3, the data is disappointing for China bulls and with so much uncertainty in the global economy, looks likely to keep copper prices blocked against breaking higher near-term.
Technical Views
Copper
The rally in copper prices off the 3.5475 level has seen the market trading back up to test the 3.6745 level resistance. For now, the area is holding though with momentum studies bullish, focus is on an eventual break higher unless we reverse through the 3.5475 lows near-term, turning focus back to 3.3445.
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