Copper settled -1.18% down at 440.50 as traders were focusing on China’s economic outlook. Government data last week showed that China’s trade surplus widened unexpectedly in December, adding to signs of recovery in the world’s second largest economy. Chinese exports grew 14.1% from a year earlier in December, blowing past expectations for a 5% gain and up from a 2.9% increase in November. Imports expanded by 6% from a year earlier, beating expectations for a 3.5% increase and following on from zero growth the previous month. Market players were now looking ahead to a report on Q4 GDP to be released on Friday, along with data on industrial production and retail sales. Copper prices found additional support amid optimism over the improved economic outlook for the euro zone. The euro rallied to an 11-month high against the US dollar, as demand for the single currency continued to be underpinned after ECB President Mario Draghi said last week that a gradual recovery in the euro zone economy would begin this year. Investors now looked ahead to a speech by Bernanke on monetary policy and the recovery from the global financial crisis later Monday, amid speculation that the Fed chairman would quash speculation over an earlier than expected end to the central bank’s quantitative easing program. For today's session market is looking to take support at 437.9, a break below could see a test of 435.4 and where as resistance is now likely to be seen at 445.4, a move above could see prices testing 450.4.

Trading Ideas:

Copper trading range for the day is 435.4-450.4.

Copper dragged lower by slight rise in dollar but further falls were kept in check by better economic growth prospects in China.

Downside was limited were expectations of healthy demand from China after data showed stronger-than-expected data in December.

Prices have retreated on expectations that the U.S. Federal Reserve may rein in easing measures sooner than expected