SHANGHAI, Apr. 1 (SMM) -- The US Labor Department announced on Thursday that the initial claims for jobless benefits were 388,000 in the week ending March 26th, slightly lower than the forecast of 380,000. Later, the US Commerce Department announced that the factory orders in February fell by 0.1%, much lower than market expectations of a 0.5% rise. Both show the US economic data remains disappointing. Troops loyal to Libyan leader Muammar Qaddafi retook control of an important oil city, leading to mounting turmoil in Libya, and crude oil futures for May delivery climbed rapidly to USD 106.83/bbl in electronic trading on the New York Mercantile Exchange. Meanwhile, expectations that the European Central Bank will raise interest rates helped boost the euro and weigh down the US dollar index, with the US dollar index falling to 75.664. However, the Federal Reserve sent a signal of interest rate increases, helping drive up the US dollar index to 76, down 0.037 compared with the previous trading day.

LME aluminum prices opened at USD 2,625/mt, and later fluctuated between USD 2,625-2,630/mt in the morning session. LME aluminum prices fluctuated widely around the 5-day moving average after gaining momentum, but failed to break through USD 2,650/mt, with prices rising by USD 11.5/mt or 0.44% compared with the previous trading day. Total positions increased by 4,183 lots to 732,135 lots.

Today, if NYMEX crude oil prices can stand steady at USD 107/bbl, LME aluminum prices will test the resistance at USD 2,660/mt, with prices expected to hover between USD 2,620-2,660/mt. SHFE 1106 aluminum contract prices will test the support at RMB 16,800/mt after opening slightly higher, with prices expected to move between RMB 16,775-16,875/mt. Spot aluminum prices will inch up in response to SHFE aluminum price trends, with prices expected to struggle above RMB 16,500/mt.                                 

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