FxWirePro: Copper resumes rally, set to retest yearly highs at 4.364 as record Chinese imports in March fuel gains

COPPER chart - Trading View 

Copper spikes over 2.25% on the day, extends gains for the 3rd straight session. Record Chinese imports data is fueling upside.

The pair was trading 2.32% higher on the day at 4.197 at around 13:50 GMT, after closing 1.68% higher in the previous session.

Data released earlier this week (Tuesday) showed China’s March copper imports rose 25% from a year earlier.

Details of the report showed Copper imports in the first quarter totaled 1.44 million tonnes, up 11.9% year-on-year, and the highest first-quarter amount since at least 2008.

A potential curtailment in credit growth in China, as part of Beijing’s efforts to curb asset bubbles could pose headwinds for copper.

Further, resurgence in coronavirus cases which could lead to more lockdowns also remain a concern.

Copper has been on a major uptrend since March 2020 and pullbacks have held support at daily cloud. 

Technical indicators are again turning bullish, raising scope for upside resumption. Bulls are likely to retest yearly highs at 4.3640.