Copper settled -0.44% down at 440.05 recovered from the day's low of 437.20 as appetite for riskier assets improved after China’s central bank injected a record amount of capital into money markets. Gains were limited as markets continued to focus on developments in the euro zone amid sustained concerns over the handling of the debt crisis in Spain and in Greece. Market sentiment firmed up on the back of reports of a surprise liquidity move by China’s central bank.

The PBoC reportedly injected a record CNY365 billion, or USD58 billion, this week into the Chinese banking system, easing liquidity conditions ahead of the end of the current quarter and before the Golden Week holidays next week. The move fuelled speculation policymakers in Beijing will do more to stimulate economic activity in the world’s largest copper consumer.

Market adjusted positions ahead of the week-long holiday that will shut markets in mainland China next week. But investors were jittery as Spain remained reluctant to request a bailout and trigger the ECB's new bond-buying program. In yesterday's trading session copper has touched the low of 436.8 after opening at 441.75, and finally settled at 440.05.

For today's session market is looking to take support at 437.2, a break below could see a test of 434.4 and where as resistance is now likely to be seen at 442.5, a move above could see prices testing 445.

Trading Ideas:

Copper trading range for the day is 434.4-445.

Copper settled down but recovers losses on prospects that demand from China could recover by the end of the year

Data showed orders for long-lasting U. S. manufactured goods fell sharply in August, suggesting the economic growth was stalling

Copper product makers in China, where demand is expected to improve modestly in the fourth quarter