FxWirePro: Copper plunges over 4.5% on dismal China data, breaks below 2.40 mark

Copper chart - Trading View 

Copper dives lower on the day, crashes over 4.5% to hit multi-year lows below 2.40 mark.

XCU/USD was trading 4.88% lower at 2.370 at around 10:30 GMT, bias strongly bearish.

Economic stimulus measures unveiled by central banks (Fed, BoC, RBNZ) failed to curb market fears.

Chinese data released earlier today showed that industrial production in the world’s manufacturing hub fell by 13.3% in January and February, its weakest reading since January 1990.

Fixed-asset investment in China fell 24.5 percent year-on-year, against forecasts for a 2.8 percent rise and falling from the 5.4 percent growth in the prior period. 

Copper prices under pressure as many economists are now forecasting an historic decline in China’s GDP for the January-March quarter.

Technical studies also paint a strongly bearish picture with rising volatility and bearish momentum. Little support seen till 2.232 (78.6% Fib).