SHANGHAI, Nov. 16 (SMM) – On Wednesday, Chinese yuan kept depreciating and hit a new low at 6.8822 since 2010 on Wednesday. SHFE 1701 copper opened at RMB 44,400/mt and swung above the moving average, down as low as RMB 43,560/mt. During the afternoon trading, SHFE 1701 copper advanced to RMB 44,650/mt with positions opening by longs but dropped after meeting resistance at the 5-day moving average. The contract finally ended at RMB 44,580/mt. Positions were up 5,800 to 248,000 and trading volumes were down 293,000 to 534,000 lots. Positions of all SHFE copper contracts increased 1,266 to 532,000 with trading volumes down 376,000 to 745,000 lots. SHFE 1701 copper stopped downward track and stabilized on Wednesday.
SHFE 1701 copper is predicted to fluctuate largely for the foreseeable future. US dollar index was approached to last year’s highest level. But there’s a possibility for SHFE 1701 copper to rally with positive technical indicators and falling Chinese yuan.