US copper holds near 3-mth peak after in line data

NEW YORK, March 6 (Reuters) - U.S. copper futures held at higher levels Friday morning after a government report on February nonfarm payrolls failed to surprise the market, leaving prices buoyed near $1.70 a lb.

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* Copper for May delivery HGK9 was trading up 3.65 cents, or 2.2 percent, at $1.69 a lb by 10:49 a.m. EST (1549 GMT) on the New York Mercantile Exchange's COMEX division.

* Morning range from $1.6360 to $1.7185.

* On Wednesday, benchmark May contract rallied to $1.7370 -- its highest level since Nov. 11.

* Market momentum may extend to the $1.75 level, but market could pull back a bit. The $1.70 level appears to be a base of resistance - Tom Hartman, broker with Altavest Worldwide Trading in Mission Viejo, California.

* Front-month March copper HGH9 up 3.95 cents at $1.6855.

* COMEX estimated futures volume at 5,206 lots by 9 a.m.

* COMEX copper strength bucks government data showing U.S. employers slashed 651,000 jobs in February. Unemployment rate at its highest in 25 years. [ID:nN05339652]

* Jobs data was in line with expectations - brokers.

* COMEX copper was up nearly 13 percent on the week after a string of withdrawals in London inventories and a rise in canceled warrants -- material earmarked for delivery -- signaled improving demand prospects, particularly in China.

* China plans to buy copper, adding to purchases of aluminum and other metals - Zhou Zhongshu, chairman of state-owned trading firm China Minmetals Group. [ID:nPEK187678]

* Favorable arbitrage opportunities between Shanghai and London copper markets underpinned market sentiment.

* The premium for Shanghai metal above the LME, including China's 17 percent VAT, back up at 671 yuan, after narrowing to just 8 yuan at the close of trade on Thursday.

* Copper was up on another drop in London Metal Exchange (LME) copper stockpiles and a weaker dollar - MF Global metals analyst Edward Meir.

* LME copper stocks <LME/STX1> fell by 3,175 tonnes on Friday, bringing total inventory levels to 522,025 tonnes.

* Canceled warrants -- material earmarked for delivery -- fell to 54,000 tonnes from Thursday's 60,775 tonnes.

* Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 36 percent to 38,468 tonnes from 28,332 tonnes a week ago.

* COMEX copper stocks CMWSU stood even at 45,319 short tons as of Thursday.

* London Metal Exchange copper for three months delivery MCU3 last traded at $3,720 a tonne, up $40 from Thursday's kerb close. (Reporting by Chris Kelly; Editing by David Gregorio)