(Updates with official prices)
LONDON, Sept 29 (Reuters) – Copper eased on Tuesday as inventories in London Metal Exchange registered warehouses jumped and the dollar’s recent gains weighed on prices as the market waited for key manufacturing data from top consumer China.
Benchmark copper on the LME was down 0.2% at $6,558 a tonne in official rings. Prices of the metal used widely in power and construction are down nearly 5% since hitting a 27-month high at $6,877.50 earlier this month.
“The higher dollar persuaded some funds to take profits on long copper positions and the deliveries (of copper to LME warehouses) reinforced the selling,” a copper trader said.
DOLLAR: A higher U.S. currency makes dollar-denominated metals more expensive for consumers using other currencies, which could subdue demand.
This relationship is used by funds that trade using buy and sell signals generated by numerical models.
DATA: Surveys of purchasing managers