Zinc yesterday traded with the range bound node and settled flat at 103.35 tracking LME zinc prices last Friday climbed to $1871/mt after opening, and then moved between $1850-1,870/mt. The number of US non-farm employment did not rise as expected, and unemployment rate remained above 8%. Expectations of QE3 implementation were depressed. As a result, the US dollar index surged and broke through 83, and the dollar against the euro rose to a 2year high, pushing down LME zinc prices to $1828/mt. Interest rate cuts announced by China's central bank, the ECB and BoE stoked investor worries that these countries' economic growth would be slower than anticipated. These meant that the US labor market already slipped all the way in Q2 as the monthly average nonfarm payroll merely increased by 75k in 2Q, significantly lower than 226k seen in 1Q. A steep drop in the US nonfarm payroll highlighted that the US economic recovery still falters following three years' recession, while the European debt crisis added to uncertainty in economy. In consequence, investors' risk appetites cooled rapidly and they rushed to the US dollar as a safe-haven, which pushed the US dollar index to a two-year high of 83.431. For today's session market is looking to take support at 103.3, a break below could see a test of 103.2 and where as resistance is now likely to be seen at 103.4, a move above could see prices testing 103.5.

Trading Ideas:

Zinc trading range for the day is 103.18-103.48.

Zinc settled flat after prices weighed Friday as number of US non-farm employment did not rise as expected

Number of US non-farm employment did not rise as expected, and unemployment rate remained above 8%.

Zinc weekly stocks at Shanghai exchange came down by 1563 tonnes