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Copper and other base metals traded steady on Thursday as investors awaited the release of US payrolls data, expected Friday, that could confirm labor-market weakness and shape expectations for a Federal Reserve rate cut next week.
Recent data showing a rise in jobless claims has strengthened bets on monetary easing, providing support for metals.
Analysts at BMI noted that softer labor readings would reinforce expectations of a rate cut and lift prices, while stronger data could dampen momentum.
Copper hovered near $9,897 a ton, slightly below its recent five-month high, with aluminum, zinc, and nickel also flat.
Internationally, US nonfarm payrolls are forecast to rise by 75,000 in August, reflecting modest hiring gains in local government, leisure and hospitality, and construction.
The unemployment rate is seen edging up to 4.3 percent, though this may be offset by a drop in labor-force participation.
Household survey employment is estimated to fall by 80,000, a smaller decline than in July but still signaling softness.
While the report is likely to confirm labor-market weakness, analysts say the Federal Reserve’s September policy decision may depend more on upcoming inflation data than on payrolls.
Meanwhile, pressure on the Zambian kwacha persisted, with the local unit weakening for a fifth straight session. Bloomberg data showed the currency fell 0.27 percent on Thursday to close just below K24.000 per US dollar.
Market players cited continued foreign currency liquidity constraints, warning the kwacha is likely to remain under pressure in the near term.
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