Copper rises as dollar weakens ahead of Fed chief testimony

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HANOI — Copper prices rose on Tuesday, as the dollar paused for breath ahead of a highly-anticipated testimony from the U.S. Federal Reserve chair Jerome Powell due later in the day, making the greenback-priced metals cheaper to holders of other currencies.

The dollar has gained sharply since the Fed last week flagged sooner-than-expected interest rate hikes, but dipped on Monday as markets looked to testimony from Powell for guidance on the U.S. central bank.

Three-month copper on the London Metal Exchange was up 0.6% at $9,238 a tonne, as of 0336 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange advanced 1.2% to 67,600 yuan ($10,461.00) a tonne.

FUNDAMENTALS

* The global world refined copper market showed a 19,000 tonnes deficit in March, compared with a 108,000 tonnes surplus in February, the International Copper Study Group said in its latest monthly bulletin.

* Global primary aluminum output rose to 5.744 million tonnes last month from revised 5.543 million tonnes in April, data from the International Aluminium Institute showed on Monday.

* The global nickel market deficit narrowed to 15,600 tonnes in April from a shortfall of 17,100 tonnes in March, data from the International Nickel Study Group (showed on Monday.

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* LME nickel rose 1.4% to $17,695 a tonne and ShFE nickel climbed 3% to 132,010 yuan a tonne.

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MARKETS NEWS

* Global shares extended their recovery, with Asian markets bouncing from four-weeks lows as investor focus on economic growth partly offset worries about any near-term rise in U.S. interest rates.

DATA/EVENTS (GMT)

1100 US Existing Home Sales May

1100 EU Consumer Confidence Flash June

1800 US Federal Reserve Chair Jerome Powell testifies

before U.S. House of Representatives Select

Subcommittee on Coronavirus Crisis

($1 = 6.4621 yuan) (Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips)