SHANGHAI, Sept. 1 (SMM) –The US economic data Tuesday showed the Chicago Purchasing Managers Index (PMI) for August was 56.5 (estimated 53.5), and factory orders in July rose 2.4% (expected 1.8%), both better than expected, and helping all US equity markets to close higher. Later, Goldman Sachs again confirmed its bullish outlook for copper, boosting positive sentiment in the market. In response, LME copper prices extended Asian trading hours' gains, and moved upward to challenge the 60-day moving average, touching a high USD 9,302/mt. However, due to the resistance at USD 9,300/mt and the moving averages, LME copper prices fell slightly at the tail of trading, with prices ending at USD 9,258/mt, up more than 1.2%. However, from Wednesday's position holdings and trading volumes, some investors cut position holdings, which weakened the strength of LME copper prices to challenge the highs.
During Thursday's Asian trading hours, currency markets will have a limited impact on LME copper prices. Market players are focusing on China's official PMI data to be announced this morning, and they expect the data to be better than the previous one, which will help LME copper prices experience a wave of upward movements. However, with the 60-day moving average available, and since copper prices on the Comex also met resistance to reach highs, LME copper prices are expected to move between USD 9,170-9,270/mt. In Chinese markets, Chinese stock markets will open higher today due to a lift from US equity markets, but due to falling trading volumes on the previous trading day, an uptrend movement will be difficult. SHFE copper prices will open higher, and will challenge RMB 68,500/mt and RMB 69,000/mt because of China PMI Data during trading hours, and SHFE 1111 copper prices will move in the RMB 68,300 -69,000/mt range.