(Updates prices and dollar impact, adds comment) By Pratima Desai LONDON, Sept 29 (Reuters) - Copper prices softened onTuesday as inventories in London Metal Exchange-registeredwarehouses jumped, but losses were capped by a weaker dollar asthe market awaited manufacturing data from top consumer China. Benchmark copper on the LME was down 0.1% at $6,568a tonne by 1558 GMT. Prices of the metal used widely in powerand construction are down nearly 5% since hitting a 27-monthhigh at $6,877.50 this month. "Earlier the higher dollar and copper stocks were behind theprofit-taking on long positions," one metals trader said. "Thisafternoon the dollar is down and we've seen some buying on theback of that."
DOLLAR: A weaker U.S. currency makes dollar-denominatedmetals cheaper for consumers using other currencies, which couldsubdue demand. This relationship is used by funds that trade using buy andsell signals generated by numerical models. DATA: Surveys of purchasing managers in China'smanufacturing sector due on Wednesday will be scrutinised forclues to demand growth for industrial metals. China's home prices are expected to rise slightly more thisyear than expected, though at a slower pace than last year, asBeijing shifts to deleverage the sector amid an economicrecovery, a Reuters poll showed. INVENTORIES: Copper stocks in LME warehouses, at 136,325tonnes , are up more than 40% since falling to76,325 last week, their lowest since December 2005. Cancelledwarrants - metal earmarked for delivery - have fallen to 30%from close to 60% last week. The deliveries have eased concern about supplies on the LMEmarket and the premium for the cash contract over three-monthcopper has moved to a discount. TECHNICALS: Upside resistance for copper comes in at the21-day moving average, currently sitting at $6,645. It hasstruggled to hold above the 50-day moving average, currently at$6,475. OTHER METALS: Aluminium was up 0.2% at $1,779 atonne, zinc fell 0.4% to $2,421, lead rose 0.4%to $1,842, tin gained 0.6% to $17,450 and nickel slipped0.4% to $14,440. (Reporting by Pratima DesaiEditing by Louise Heavens and David Goodman)
LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES )) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.