* Discount for cash vs three-month aluminium narrows
* More aluminium due to leave LME storage
* China data coming into focus (Updates prices)By Pratima DesaiLONDON, Oct 9 (Reuters) - Copper prices rose to two-weekhighs on Friday after talks about financial aid for the U.S.economy restarted, the dollar slipped and miners went on strikein Chile, a top producer of the industrial metal.Benchmark copper on the London Metal Exchange was up1.3% higher at $6,768 a tonne at 1601 GMT. Prices earlier roseto $6,781 a tonne, the highest since Sept, 22 and not far offthe 27-month high of $6,877.5 hit last month."President Donald Trump making a U-turn on the aid package,the weaker dollar and China back from holiday are all helping topush prices up," said Commerzbank analyst Daniel Briesemann."The strike at Lundin Mining is not expected t0o have amaterial impact on production, but people are waiting to see theoutcome of the negotiations and what that means for other wagetalks coming up in Chile." US AID: Trump said talks with Congress about furtherfinancial aid for the U.S. economy hit by the COVID-19 crisishad ressumed, after he ended negotiations earlier thisweek.CHILE: A union of workers at Lundin Mining's Candelariacopper mine in Chile walked off the job on Thursday after talksbroke down. DOLLAR: The dollar fell to its lowest in nearly three weekson Friday. A lower U.S. currency makes dollar-priced metalscheaper for holders of other currencies, which could help boostdemand. CHINA: Markets will scrutinise loans, total social financingand trade data due next week from China, which accounts forabout half of global consumption of industrial metals.
ALUMINIUM: The discount for cash over the three-monthaluminium contract narrowed to $13.8 a tonne, thelowest since early March.The contraction was due to falling stocks inLME approved warehouses, which at 1.416 million tonnes are down15% since July, and large holdings of aluminium warrants .Three-month aluminium was up 2.6% at $1,852 a tonnefrom an earlier $1,855.50, the highest since July 2019.OTHER METALS: Zinc climbed 2.6% to $2,426, lead rose 1% to $1,810, tin added 0.6% to $18,250 andnickel gained 3.8% to hit $15,220. (Reporting by Pratima Desai; Editing by Emelia Sithole-Matariseand David Clarke)