Aluminium price high boosts the outlook for growth

Aluminium prices rebounded on Thursday, lifted by a strong euro and better-than-expected U.S. data that boosted the outlook for growth, but slow demand from top consumer China may keep further gains in check.

Aluminium gained 1.3 percent to finish at $1,979 a tonne.

Investors were encouraged on Thursday after data showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week.

"It's a very encouraging number. It shows now that we have a few consecutive weeks where new claims are at this lower trend," said Russell Price, senior economist at Ameriprise Financial Services in Michigan.

Data on Wednesday that showed U.S. private employers hired more workers than expected in February and demand for a range of factory goods was solid in January.

Investors are likely to pay close attention to U.S. non-farm payrolls data due on Friday, seen as a key labour market indicator for the world's largest economy.

"As far as the U.S. is concerned there are clearly a lot of things that are positive," said Nic Brown, head of commodity research at Natixis.

"The housing market is clearly improving and that will have a knock-on effect but equally the whole question of fiscal retrenchment will be a serious drag to growth for some to time."

Also helping lift prices was a rise in the euro against the dollar, which makes commodities priced in the U.S. dollar cheaper for holders of other currencies.

The single currency rallied against the dollar after the European Central Bank President Mario Draghi gave no hints about monetary policy easing in the months ahead after leaving its benchmark interest rate unchanged at a record low 0.75 percent.