Copper yesterday settled up 0.97% at 425.65 rose to hit a one-month high on Thursday, after data indicated that the slump in the euro zone's manufacturing sector is easing. A stronger-than-expected reading on Chinese factory activity further supported gains. Appetite for riskier assets was also boosted after Fed gave no indications on whether it will begin to taper its stimulus program in the near future. While in the euro zone, data showed that July's manufacturing PMI improved to a two-year high of 50.3 from 48.8 in June. Also Germany's manufacturing PMI was revised up to an 18-month high of 50.7 in July from a final reading of 48.6 in June and above the preliminary reading of 50.3. The industrial metal was also boosted after a government report released earlier in the session showed that China's manufacturing PMI rose unexpectedly to 50.3 in July from 50.1 in June. However, the official data differed from the final reading of the HSBC China PMI, which hit an 11-month low of 47.7 in July. Meanwhile, the Fed said that it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest". The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar. Support seen after official data showed that the US economy grew more-than-expected in the second quarter of 2012. Technically market is getting support at 421.03 and below same could see a test of 417.00 level, And resistance is now likely to be seen at 428.60, a move above could see prices testing 431.60.

Trading Ideas:

Copper trading range for the day is 417-431.6.

Copper rose sharply after data indicated that the slump in the euro zone's manufacturing sector is easing.

A stronger-than-expected reading on Chinese factory activity further supported gains.

Data showed that July's manufacturing purchasing managers' index improved to a two-year high of 50.3 from 48.8 in June.