Copper settled up 0.61% at 430.80 after a raft of upbeat economic data of the US and the UK fuelled optimism over the global economic outlook. Meanwhile President of the Federal Reserve Bank of Chicago, said the US economy is strong enough to sustain the impact from the reduction of QE3 later this year. His remarks sent the US dollar index down, lending support to base metals prices. LME copper found its high at $7,078/mt. However, there was a lack of massive buying as investors are staying guarded before China announces its July foreign trade data and industrial value-added. Finally, LME copper ended the day up $7/mt at $6,990/mt. Commodity prices generally fell on growing expectations that the Fed will begin to taper off QE3 in September. Trade deficit in the US fell from $45.03 billion to $34.22 billion in June, far better than forecasts. Exports rose to $191.17 billion, the largest growth since last September, while imports dropped to $225.4 billion. Upbeat economic data in Europe once again signal sustainable recovery in the European economy. Industrial output in the UK rose 1.2% in June, the fastest growth since January 2011. Copper traders now looked ahead to data scheduled for later in the week on China's trade balance as well as a report on inflation and industrial production, amid ongoing concerns over the Asian nation's economic outlook. Technically market is getting support at 427.40 and below same could see a test of 424.00 level, And resistance is now likely to be seen at 435.70, a move above could see prices testing 440.60.

Trading Ideas:

Copper trading range for the day is 424.1-440.7.

Copper gained helped by a weak dollar and ahead of trade and industrial output data from China.

Copper prices have found a floor around the $6,700-a-tonne level with consistent buying emerging on dips

Copper daily stocks at Shanghai exchange came down by 549 tonnes