Copper hits 2-week high ahead of more China data

Investing.com - Copper prices rose to the highest level in almost two weeks on Wednesday, as investors looked ahead to key data from China later in the week, which could provide more evidence of a slowdown in the world's second largest economy.

On the Comex division of the New York Mercantile Exchange, copper for July delivery hit an intraday peak of $2.765 a pound, the most since May 29, before trading at $2.763 during European morning hours, up 4.9 cents, or 1.82%.

Futures were likely to find support at $2.682, the low from June 8, and resistance at $2.783, the high from May 29.

A day earlier, copper inched up 1.7 cents, or 0.65%, to close at $2.714 amid speculation policymakers in China will have to introduce further stimulus measures to jumpstart the economy amid lackluster growth.

Market participants looked ahead to a raft of Chinese economic data due on Thursday for further indications on the strength of the economy and the future path of monetary policy. The Asian nation will release data on industrial production, retail sales and fixed-asset investment for May.

Recent economic data from China has indicated that the recovery remains fragile and may require further monetary stimulus.

China's economy grew at the slowest pace in six years in the first quarter, underling speculation policymakers will have to introduce further easing measures to jumpstart the economy amid lackluster growth.

Since November, the People's Bank of China has introduced a series of stimulus measures, including lowering interest rates three times and cutting the reserve requirement ratios of major banks twice, in order to spur economic activity and boost growth.

The Asian nation is the world's largest copper consumer, accounting for nearly 40% of global demand.

Elsewhere, gold futures for August delivery tacked on $6.80, or 0.58%, to trade at $1,184.40 a troy ounce, while silver futures for July delivery rose 13.6 cents, or 0.85% to trade at $16.09 an ounce.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.75% to 94.45 early on Wednesday, pressured lower by a stronger yen.

USD/JPY fell more than 1% to hit a two-week low after Bank of Japan Governor Haruhiko Kuroda said the real effective exchange rate shows the Japanese currency is "very weak".

Meanwhile, the euro pushed higher against the U.S. dollar, as soaring German Bund yields provided support.

German 10-Year bund yields rose above the psychologically-important 1%-level for the first time since September 2014 amid indications that the European Central Bank's massive stimulus program boosted growth prospects in the region and helped avert the risk of deflation.

In the U.S., the yield on 10-Year Treasurys advanced 4.9 basis points, or 2.01%, to hit 2.466%, the highest level since October 3, amid speculation that the Federal Reserve could raise rates in September.