Weak US Employment Data Drove US Dollar Index to Pull Back, Copper Futures Fluctuated Rangebound and Moved Downwards After a Higher Opening [SMM Copper Futures Review]

SMM September 8 news:

The US August non-farm payrolls added 22,000 jobs last Friday, significantly below expectations, with the unemployment rate hitting 4.3%, the highest in nearly four years. Market expectations for a September interest rate cut by the US have been fully priced in, with focus shifting to discussions on a potential year-end second rate cut and its magnitude. The US dollar index plunged sharply, retreating to around the mid-97 level, while LME copper showed strong support at the bottom.

The most-traded SHFE copper 2510 contract moved downwards after a higher opening today, starting at 80,290 yuan/mt before rapidly declining to a low of 79,400 yuan/mt. In the afternoon, it fluctuated around 79,600 yuan/mt before finally closing at 79,650 yuan/mt, down 290 yuan/mt (0.37%) from the previous session. Trading volume reached 908.5 million lots, with open interest dropping by 8,849 lots, indicating capital outflow. The futures showed clear bearish pressure in the morning session, with some support at lower levels but struggling to rebound, maintaining an overall weak trend.

Looking ahead, on the macro front, the strong US dollar index and cautious sentiment toward commodities kept LME copper from holding above the $10,000 threshold. Although domestic consumption is approaching the September peak season, recovery remains limited, with weak supply and demand constraining any rebound. Technically, resistance is evident at 80,200 yuan, while support forms at 79,400 yuan, with short-term prices expected to remain in the doldrums.