NEW YORK (TheStreet) -- Base metals early Wednesday were trading higher but could turn and move lower if expected U.S. housing data comes in negative.
The metals complex also could take a cue from a decrease in industrial orders in the eurozone.
The U.S. House Price Index for July is seen at negative 0.1% compared with negative 0.3% in the June.
Copper
Copper for three-month delivery ticked up 0.4% to $7,710 per tonne on the London Metal Exchange Wednesday, buoyed by strong housing trends and the weaker dollar index. Inventories narrowed 2,475 tonnes to 380,025 tonnes. The metal faces support at $7,663 and resistance at $7,790.
Southern Copper(SCCO), which closed at $33.45 on Tuesday, finds support at $33.11 and faces resistance at $33.76. Freeport-McMoRan Copper & Gold(FCX) closed at $82.99 with support and resistance at $81.47 and $83.99, respectively. Teck Resources(TCK) closed at $38.11 with support at $37.41 and resistance at $38.49.
Aluminum
Aluminum for three-month delivery edged up 0.2% to $2,179 per tonne. LME warehouse drawdown was 3,950 tonnes to close at 4.38 million tonnes. The metal faces support at $2,159 and resistance at $2,223.
As China prepares to scale back domestic aluminum capacity, pressured by higher production costs and the government mandate to restrict power to energy-intensive smelters, United Company Rusal foresees China turning into a net importer of primary aluminum by 2011 and expects the metal to trade in the range of $2,400 to $2,500 per metric tonne.
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