







SHANGHAI, Sept. 22 (SMM) – On Wednesday’s night trading, SHFE 1611 copper started at RMB 37,310/mt. The contract then fluctuated at around RMB 37,315/mt with a swing range of RMB 120/mt and a high of RMB 37,380/mt. SHFE 1611 copper found support at the 5 and 40-day moving averages after touching the 60-day moving average with positions closing by longs for gains. Positions fell 2,254 to 176,000 and trading volumes reduced 38,440 to 50,972 lots.
On Thursday, US Fed announced to leave interest rate unchanged and US dollar index declined to 95.15. SHFE 1611 copper started higher at RMB 37,400/mt and broke through the 60-day moving average in a short time, thanks to entering of longs. Later, the contract fluctuated at RMB 37,500/mt and advanced to RMB 37,680/mt due to positions opening by longs. SHFE 1611 copper finally ended at RMB 37,650/mt. Positions were down 6,050 to 172,000 and trading volumes were up 91,598 to 382,000 lots. SHFE 1611 copper soared with entering of longs but met resistance at upper boll on Thursday.
Markets expect Chicago Fed national activity index due for release tonight to be negative and US this week’s initial jobless claims should be positive. The conference board leading indicator may fall bacl on a monthly basis while annualized existing home sales will likely be upbeat. As such, US dollar index may fall back with poor reading of US most economic figures. This may give rising momentum to SHFE copper in near future.
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