Copper settled down -0.36% at 465.35 edged lower on Tuesday, as investors awaited the release of the minutes of the Federal Reserve’s December meeting on Wednesday. Investors were turning their attention to Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus. The U.S. central bank will reduce its bond-buying program by USD10 billion a month starting in January. Some market participants believe the Fed will likely taper its bond purchases by USD10 billion in each of its next seven meetings before ending the program in December 2014, amid indications of an improving U.S. economy. The U.S. is second behind China in global copper demand. 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. While the US Senate confirmed Janet Yellen as the new Chief of the Federal Reserve, but the news exerted limited influence on the market as the result matched expectation. What really boosted the market was a 13% drop in the US trade deficit during November to USD 34.3 billion, its lowest since October 2009. The US exports, primarily driven by industrial supply, means of production, and automobile exports, hit an all-time high in November. The shrinking imports of crude oil were also behind the lower trade deficit which heralded further improvement in the economy. Technically market is under long liquidation as market has witnessed drop in open interest by -1.41% to settled at 12926 while prices down -1.7 rupee, now Copper is getting support at 463.7 and below same could see a test of 462.1 level, And resistance is now likely to be seen at 467.4, a move above could see prices testing 469.5.

Trading Ideas:

Copper trading range for the day is 462.1-469.5.

Copper edged lower as investors awaited the release of the minutes of the Federal Reserve’s December meeting on Wednesday.

Chinese imports of copper likely fell in December from the month before due to a cash crunch and as growth momentum slowed

In the euro zone, the preliminary CPI rise for December retreated to 0.8% from 0.9%, and core CPI was only 0.7%.