Copper yesterday settled at 410.85 steadied after hitting a near three-week low on Monday on concerns about top consumer China's economy, with expectations the Federal Reserve will reaffirm its pledge to keep U. S. interest rates near zero underpinning prices. Investors are watching for official data this week from China gauging activity in its manufacturing sector. Last week an initial reading from HSBC showed factory activity in July at its slowest in 11 months. Helping support copper prices was the dollar's fall to a five-week low against a basket of currencies on expectations the U. S. Federal Reserve intends to keep interest rates low for some time. The Fed starts a two-day meeting on Tuesday. A weaker dollar makes dollar-priced metals cheaper for European and other non-U. S. investors. Earlier, U. S. data showed pending home sales fell in June from a near six-year high in May. Markets are focused, however, on U. S. payrolls data that will be released on Friday. The forecast is for 185,000 jobs to have been added in July and a dip in the jobless rate to 7.5 percent. A strong report would support the case for the Fed to start rolling back stimulus. Although most economists are eyeing a September start to stimulus withdrawal, most have scaled back views of any aggressive changes. Also underpinning copper, Rio Tinto has put on hold a more than $5 billion underground expansion of its giant Oyu Tolgoi copper mine in Mongolia, after the government said parliament needed to approve the project's financing. Now Copper is getting support at 407.70 and below same could see a test of 404.60 level, And resistance is now likely to be seen at 412.60, a move above could see prices testing 414.40.

Trading Ideas:

Copper trading range for the day is 404.6-414.4.

Copper ended with small gains as the dollar fell but further gains were capped by uncertainty about growth in top consumer China.

Anticipation that the US Federal Reserve will keep QE3 in place offset worries over demand in China.

Investors are watching for official data this week from China that gauges activity in its vast manufacturing sector.