The Institute for Supply Management’s gauge of US factory activity dropped to the lowest in more than two years in September, causing the dollar to retreat.
Copper for delivery in December rose 2.3% from Monday’s settlement price, touching $3.49 per pound ($7,678 per tonne).
Jobs data due later this week should provide more clues on the Federal Reserve’s ratehike trajectory, with more robust employment gains likely to firm its hawkish stance.
In China, there’s speculation Beijing may soon start relaxing its strict covid-19 restrictions.
While it’s unlikely that a complete reversal of the Covid Zero policy will take place at the National Congress on October 16, a gradual easing is on the cards, Vivek Dhar, a commodities analyst at Commonwealth Bank of Australia, said in a note.