Copper settled down -1.59% at 422.7 as continued strength in the U. S. dollar and concerns about a slowdown in demand from China weighed. Official trade data released Monday showed that China's copper arrivals fell 12% from a year earlier in August, due to the fallout from a government investigation into metal financing at Chinese ports. A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.

The dollar rose to its highest level in six years against the yen, while the euro slid to fresh 14-month lows after a study by the San Francisco Federal Reserve published on Monday indicated that Fed officials see rates rising earlier than markets expect. The greenback has rallied in recent weeks amid expectations that the Fed may announce a rate increase earlier than expected after economic data indicated that the recovery in the U. S. is progressing strongly.

Bank of England Governor Mark Carney said that the BOE may start to raise interest rates next spring and the timing of this move will be based largely on the wage growth. The European Union passed a new round of sanctions on Russia on Tuesday, but may delay the implementation of the sanctions. Spain's government bond yields were up 17 basis points, the biggest intraday gain since the establishment of the European Union, as a result of the Catalonia's push for independence. Technically market is under fresh selling as market has witnessed gain in open interest by 17.2% to settled at 10389 while prices down -6.85 rupee, now Copper is getting support at 419.5 and below same could see a test of 416.3 level, And resistance is now likely to be seen at 427.6, a move above could see prices testing 432.5.

Trading Ideas:

Copper trading range for the day is 416.3-432.5.

Copper dropped as continued strength in the U. S. dollar and concerns about a slowdown in demand from China weighed.

A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.

Official trade data released Monday showed that China's copper arrivals fell 12% from a year earlier in August