SHANGHAI, Sept. 17 (SMM) – LME lead drifted higher to the 60-day moving average overnight on the back of a softer dollar and a rally in Chinese stock market. LME lead closed the session at USD 1,731.5/mt, up by USD 34/mt or 2%. Trading volumes increased 1,239 to 4,687 lots but positions declined 5,885 to 126,000. LME lead inventories saw a slip of 625 mt to 166,150 mt.
US dollar weakened as a result of unexpected slip in US August CPI, favoring commodity prices. Gold and crude oil prices also rebounded.
Markets will focus on US interest rate meeting tonight. But the result will be announced after 2:00 am. Markets expect US employment and house data to be downbeat. This may slow the pace of rate hike in US.
LME lead may move in USD 1,720-1,740/mt during Asian trading hours. SHFE 1511copper should hover between RMB 13,310-13,400/mt on Sept. 17 and RMB 13,350-13,500/mt for spot lead.