LME zinc slightly dipped, focus on core PCE price index tonight [SMM Zinc Morning Comment]

SMM, Aug 30: Overnight, U.S. initial jobless claims and GDP data showed a strong economy; Iraq plans to cut oil loading starting in September; Libya is reportedly halting oil loading at five export terminals; the Japanese government raised its economic outlook for the first time in 15 months; Xi Jinping met with U.S. National Security Advisor Sullivan; the PBOC purchased 400 billion yuan of special government bonds; offshore yuan broke through the 7.1 mark against the dollar.
Overnight, LME zinc opened at $2,872/mt. At the beginning of the session, bears had the upper hand, pushing LME zinc down to $2,856/mt. Subsequently, bulls entered at the low, driving LME zinc up in steps, reaching a high of $2,905/mt during European trading hours. Later, as bears entered and bulls closed positions, LME zinc's center of gravity shifted down to near the daily moving average. It attempted to break above but failed, returning to near the daily moving average, and finally closed up at $2,885.5/mt, up $13/mt, or 0.45%. Trading volume decreased to 9,061 lots, and open interest increased by 3,814 lots to 223,000 lots. Overnight, LME zinc recorded a small bearish candlestick, with the 5-day moving average forming resistance above and the 10-day moving average forming support below. Overnight, LME zinc inventory decreased by 3,300 mt to 246,325 mt, a drop of 1.32%, marking another reduction in LME inventory. Strong U.S. employment data indicated the resilience of U.S. economic data, with LME zinc operating at high levels. Today, focus on the U.S. July core PCE price index.
Overnight, the most-traded SHFE zinc 2410 contract opened lower at 23,995 yuan/mt. At the beginning of the session, SHFE zinc briefly consolidated around the daily moving average before bears increased positions, pushing SHFE zinc down to 23,925 yuan/mt. Subsequently, as bears took profits and exited, SHFE zinc corrected upwards, with its center of gravity shifting above the daily moving average. At the end of the session, bulls increased positions, driving SHFE zinc up quickly, with its center of gravity shifting to around 24,050 yuan/mt, reaching a high of 24,070 yuan/mt during the period, and finally closed up at 24,050 yuan/mt, up 35 yuan/mt, or 0.15%. Trading volume decreased to 75,015 lots, and open interest decreased by 357 lots to 123,000 lots. Overnight, SHFE zinc recorded a small bullish candlestick, with the 5-day moving average forming resistance above and the MACD bullish candlestick narrowing. As ferrous metal prices stabilized, galvanized production slightly improved, and social inventory continued to deplete amid reduced supply, supporting zinc prices to move at high levels.