Copper settled down -1.96% at 447.3 as the U. S. fiscal deadlock eroded appetite for risk-associated assets, though the dollar found some relief in Janet Yellen's nomination as head of the U. S. Federal Reserve. President Barack Obama refused to give ground in the fiscal confrontation with Republicans on Tuesday, saying he would negotiate on budget issues only if they agree to re-open the federal government and raise the debt limit with no conditions. The dollar recovered slightly on the news that President Obama has tapped dovish Vice Chairwoman Yellen as Ben Bernanke's successor in the top job at the Federal Reserve, though the debt ceiling continues to cast a long shadow. Germany saw its industrial output grow 1.4% MoM in August after being seasonally adjusted, outperforming expectations for a 1.0% growth. July's reading was revised down from a 1.7% decline to a 1.1% drop. These are signs of further recovery in German economy. However, UK's industrial production, manufacturing and trade account in August surprisingly missed forecasts, with industrial output falling 1.1% from July. This raised doubt over the strength of the country's economy in Q3. The pound trimmed 0.8% against the greenback in the wake of these worse-than-expected data. Technically market is under long liquidation as market has witnessed drop in open interest by -10.81% to settled at 11763 while prices down -8.95 rupee, now Copper is getting support at 443.6 and below same could see a test of 439.9 level, And resistance is now likely to be seen at 453.2, a move above could see prices testing 459.1.

Trading Ideas:

Copper trading range for the day is 439.9-459.1.

Copper dropped as a partial U. S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline

Investors continued to monitor negotiations over a U. S. budget impasse that has kept the federal government shut down since October 1.

Copper prices came under additional pressure after the International Monetary Fund lowered its 2013 growth forecast for China to 7.6%