Copper yesterday traded with the positive node and settled 0.18% up at 447.60 as markets continued to digest the news that China's NDRC approved 60 infrastructure programs of more than $150 billion, and investors believed this move could help Chinese economy move out of three-year sluggish growth period. In the evening, the much-awaited US economic figures revealed that non-farm payrolls added by only 96,000 in August, well below market expectations of 125,000. But the US unemployment rate dropped to 8.1% vs 8.3%, and markets had expected the rate to remain at 8.3%. This indicated long-lasting sluggishness of the US labor market and stimulated investor anticipations that the Fed may launch a new monetary stimulus package. Markets even speculated the Fed would announce to inject liquidity further to boost weak economy in the week beginning September 10. In response, the US dollar index plunged by nearly 1.2%, leading LME copper to rise appreciably to $8,000/mt before ending at $7,982/mt, a gain of as high as 3.54%, and also registering the biggest one-week increase since the last week of June. China reported at the weekend that its CPI returned around 2% again and PPI slipped significantly, which will restrict copper demand prospects. For today's session market is looking to take support at 445.6, a break below could see a test of 443.7 and where as resistance is now likely to be seen at 450.1, a move above could see prices testing 452.6.

Trading Ideas:

Copper trading range for the day is 443.6-452.6.

Copper rose driven by stimulus hopes in US and China's approval of a multibillion dollar infrastructure program

Gains were fueled on investor bets of a healthier year-end demand outlook from China and another round of bond buybacks

Additional support came from the currency market, where the euro climbed on the prospects of more bond buying