Copper settled up 0.31% at 436.10 as support seen after U.S. economy signaled stronger demand in the world’s second-largest user of the metal, also support seen on MCX as Rupee slumped to a three-month low on Thursday, hurt by a rally in the dollar in global markets. While overall sentiments remain weak for LME Copper after a rout on Wall Street over Argentinian default soured risk appetite and ahead of a deluge of economic indicators out later in the session, including an assessment of activity in China's vast manufacturing sector. Outlook remain weak for Copper as Freeport-McMoRan Inc. received approval from Indonesia to resume exports from its Grasberg mine. Freeport plans to resume copper concentrate exports from Indonesia in August, the company said in a statement Friday. The company had reduced operations by about half at the Grasberg mine, the third largest in the world, after the government introduced restrictions in January to encourage local raw-material processing. Now traders are eyeing on China’s official manufacturing PMI for July which is expected to come in positive on Friday, which should provide some support to base metals prices. US July nonfarm payrolls report due for release late on Friday, however, is expected to be negative. This, combined with the rising US dollar index, should place downward pressure on LME prices. Technically market is under fresh buying as market has witnessed gain in open interest by 10.33% to settled at 10287 while prices up 1.35 rupee, now Copper is getting support at 432.5 and below same could see a test of 429 level, And resistance is now likely to be seen at 438.6, a move above could see prices testing 441.2.

Trading Ideas:

Copper trading range for the day is 429-441.2.

Copper gains as support seen after U.S. economy signaled stronger demand in the world’s second-largest user of the metal.

Freeport plans to resume copper concentrate exports from Indonesia in August, the company said.

Chile produced 488,078 tonnes of copper in June, a 1.2 percent increase from a year earlier mainly due to improved ore grades, the government said.