Off The Wire
METALS-Copper climbs to one-week high as dollar slides
* China's growth-supporting moves to help copper
* Strong resistance at $6,140 (Updates with closing prices) By Pratima Desai LONDON, Aug 21 (Reuters) - Copper climbed to one-week highs on Tuesday as funds cut bets on lower prices and the dollar retreated from recent highs as the market waited for talks on the U.S.-Chinese trade dispute. Benchmark copper on the London Metal Exchange ended up 0.9 percent at $6,045 a tonne. It earlier hit $6,076, its highest since Aug. 21.
The metal used in power and construction is up nearly 5 percent since hitting a 14-month low at $5,773 last Wednesday. "The dollar has come off and there is some easing of tensions between China and the United States," a senior metals trader said. "If Chinese demand holds up then copper will stay firm around these levels, possibly a little higher."
DOLLAR: A lower U.S. currency makes dollar-denominated commodities cheaper for holders of other currencies, which potentially would boost demand. This relationship is used by funds to generate buy and sell signals from numerical models. TRADE: U.S. President Donald Trump said he does not expect much progress from trade talks with China this week in Washington and that he had "no time frame" for ending the dispute, which threatens to impose tariffs on virtually all goods traded between the world's two largest economies. CHINA: China is the world's largest copper consumer, accounting for nearly half of global demand estimated at 24 million tonnes this year. The United States accounts for about 8 percent of global demand. GROWTH: Analysts say moves by China to support growth and investment should sustain growth in copper demand. Clues will come from surveys of purchasing managers in the manufacturing sector at the end of the month. INFRASTRUCTURE: China almost quadrupled the value of fixed-asset investment projects approved in July from the previous month as Beijing looked to accelerate infrastructure spending to stabilise the cooling economy. SUPPORT: China's banking and insurance regulator has asked financial institutions to give more support to infrastructure investment, importers and exporters, and creditworthy companies experiencing temporary problems. TECHNICALS: Copper price resistance sits at $6,140 a tonne, where the 21-day moving average and Fibonacci retracement level have converged. First support comes in at $6,000 followed by $5,773, last week's low. PRICES: Aluminium ended little changed at $2,054.5 a tonne, zinc climbed 3.6 percent to $2,462, lead added 1.8 percent to $2,008, tin rose 1.2 percent to $19,030 and nickel was flat at $13,560. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Pratima Desai Additional reporting by Tom Daly Editing by Edmund Blair and David Evans)
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