SHANGHAI, Aug. 25 (SMM) –The US Department of Commerce announced on Wednesday that US durable goods orders for July rose 4% from June levels, well above economic analysts' expectations of 2%, helping US equity markets close higher. Meanwhile, markets expected that the US Federal Reserve (Fed) would introduce more stimulus measures very soon, further brightening copper demand prospects. In response, LME copper prices continued to move higher during European and American trading hours, touching a high of USD 8,925/mt. At the tail of trading, the US dollar index rebounded above 74 points, restricting the gains for LME copper prices, which finally closed at USD 8,873/mt, slightly up RMB 21/mt. Market transactions remained quiet after copper prices experienced significant fluctuations in early August, and cautious sentiment continued to overshadow markets.
During Thursday's Asian trading hours, with resistance at the moving averages, the US dollar index will fluctuate between the 5 and 10-day moving averages. Copper prices fluctuated narrowly in the morning business, and gold prices fell from high levels. The low-end LME copper prices are well supported, but the resistance to move higher is still available. Besides, market transactions will be cautious before Bernanke's speech on Friday, with limited upward room for LME copper prices. Therefore, LME copper prices will continue to fluctuate, with prices expected between USD 8,790-8,900/mt. In domestic markets, domestic stock markets will open higher due to a lift by rising US equity markets, and then will struggle at the 10-day moving average. SHFE three-month copper contract prices will open slightly higher due to support from LME copper prices, and the fluctuating band will nearly unchange from the previous trading day levels. SHFE 1111 copper contract prices will move between RMB 66,200-66,900/mt.