NEW YORK (TheStreet) -- Base metals moved higher Friday as dollar sentiment remains bearish and Chinese equities gained after a weeklong holiday.
U.S. jobs market data scheduled for 8:30 a.m. EDT could rattle market sentiment and put a cap on gains in the metals complex.
Private sector payrolls are expected to increase by 74,000, according to consensus estimates from Briefing.com after rising 67,000 in August. Estimates from economists polled by TheStreet ranged between an increase of 60,000 to 100,000. The overall unemployment rate is expected to tick up to 9.7% from 9.6%.
Copper
Copper for three-month delivery firmed 0.8% to $8,165 per metric tonne on the London Metal Exchange as the dollar languished, bolstering the appeal of metals as an inflation hedge. Overall, the downtrend in the dollar has been a source of strong support for base metals and peak demand season will help sustain the price rise. Copper inventories were down 675 tonnes from 373,450 tonnes. The red metal finds support at $7,968 and resistance at $8,245.
BHP Billiton(BHP), majority owner of the world's largest copper mine, may boost copper output from existing operations 65% by 2020, according to a Deutsche Bank report. Separately, Teck Resources(TCK) has begun commercial production from the new copper concentrator at its mine in central Chile. The mine, in which Teck has a 90% stake, is estimated to produce about 80,000 tonnes of copper and 55,000 ounces of gold annually over the next 10 years.
Southern Copper(SCCO), which closed at $38.30 on Thursday, finds support at $37.82 and faces resistance at $38.81. Freeport-McMoRan Copper & Gold(FCX) closed at $91.40 with support and resistance at $89.54 and $93.56, respectively. Teck Resources closed at $43.08 with support at $42.28 and resistance at $44.02.
Aluminum
Aluminum for three-month delivery traded at $2,345 per tonne, up 0.9%. Inventories shed 4,000 tonnes to 52-week lows of 4.34 million tonnes. The metal finds support at $2,303 and resistance at $2,375.
Alcoa(AA) closed trading at $12.22 Thursday, finding support and resistance at $12.04 and $12.46, respectively. Century Aluminum(CENX) closed at $13.36 with support at $13.09 and resistance at $13.67. Kaiser Aluminum(KALU) closed at $43.21, finding support at $42.46 and resistance at $44.21.
Nickel
Nickel for three-month delivery gained 1% to $24,128 per tonne on the LME. Inventories shed 138 tonnes to 122,994 tonnes. The metal faces support at $23,530 and resistance at $24,700.
