Copper yesterday settled at 428.20 gained as mixed US employment data raised anticipation that the US Federal Reserve will keep bond-buying program in place, lending support to base metals prices. Meanwhile, a weaker US dollar also provided upward momentum to commodity prices. US non-farm employment report, non-farm payrolls rose by 162,000 in July, lower than the 185,000 forecast and June's 195,000. Non-farm payrolls in June were revised down from a 195,000 increase to a 188,000 growth, and non-farm payrolls in May were also revised down from a 195,000 rise to a 176,000 increase. Unemployment rate fell from 7.6% to 7.4%, the lowest since December 2008. Disappointing non-farm employment report alleviated worries that the Fed will begin to taper off QE3 in September. As a result, the US dollar index retreated from 82, lending support to base metals. On the other hand, factory orders in June missed forecasts, triggering concerns that a weaker US economy will eat into metal demand. While PPI in the euro zone June rose by 0.3% YoY in June, in line with expectations and flat with May. A paper by the Richmond Fed said the ECB should launch quantitative easing across the board to lift the euro zone fully out of its slump. This ignited anticipation that the ECB may roll out monetary stimulus soon. PBOC said during its 2Q monetary policy report that lending to polluting and energy-intensive enterprises will be constrained. China's non-manufacturing PMI was 54.1 in July, capping forecasts and rising for the first time in four months, which will lift base metals prices only marginally. Technically market is getting support at 427.75 and below same could see a test of 427.3 level, And resistance is now likely to be seen at 428.55, a move above could see prices testing 428.9.

Trading Ideas:

Copper trading range for the day is 427.3-428.9.

Copper prices ended with small losses as gains were capped by caution on the U. S. growth outlook after mixed jobs figures.

Factory activity in China was slightly stronger than expected in July and U. S. manufacturing grew at its fastest in two years

The European Central Bank (ECB) affirmed interest rates could fall further from record lows.