Zinc settled 0.33% up at 107.30 as positive economic data from major economies supported, LME zinc prices were weighed during China's National Day holiday due to mounting inventory pressure. LME zinc prices began to slip and hit a low at $2,052/mt after losing support at 20-day moving average, boosted by the news that the US unemployment rate fell from 8.1% for August to 7.8% for Sept, LME zinc prices pared certain losses and finally closed at $2,074/mt, down $1.5/mt from a day earlier. Greece unveiled the draft 2013 budget last Monday, and painful cuts will be brought forward as the country is expected to be a sixth year of recession. In what came as a surprising move, the RBA cut their target interest rate by 25bps to 3.25%, the third cut over the past six months. In China, the manufacturing PMI for Sept came in at 49.8, up from August's 47.6. The final Markit Eurozone Manufacturing PMI was 46.1 in Sept, higher than the flash reading and market expectations, both standing at 46.0. The US ISM manufacturing PMI for Sept was 51.5, higher than the preliminary data of 49.6, and also beating market expectations at 49.8. The final US Markit manufacturing PMI for Sept, however, hit the lowest level since Sept 2009. For today's session market is looking to take support at 107, a break below could see a test of 106.6 and where as resistance is now likely to be seen at 107.5, a move above could see prices testing 107.7.

Trading Ideas:

Zinc trading range for the day is 106.63-107.73.

Zinc ended with gains as positive economic data from major economies supported prices

The final Markit Eurozone Manufacturing PMI was 46.1 in September, higher than flash reading and market expectations

Chinese traders returned to the market on Monday after a week long national holiday.