METALS-Base metals mixed; dollar hinges on US economic data

By Violet Li and Mei Mei Chu

SHANGHAI, Jan 6 (Reuters) - Base metals were mixed on Monday, trading in a narrow range, influenced by the optimism stemming from China's policy meeting last Friday, but the potential for gains was tempered by a robust U.S. dollar awaiting directional cues from U.S. economic data.

China's central bank announced plans to cut the reserve requirement ratio and interest rates at an opportune moment, as per a statement from last Friday's quarterly monetary policy committee meeting.

China's decision highlights a broader strategy to stimulate growth in the world's second-largest economy, currently impacted by a struggling property sector affecting consumer wealth and household expenditure.

The dollar hovered near a two-year high on Monday, with traders eagerly awaiting this week's U.S. economic data. The key focus is December's non-farm payrolls report, which could provide insights into the Federal Reserve's interest rate plans.

A stronger dollar makes it more expensive for holders of other currencies to buy greenback-priced commodities.

Three-month copper on the London Metal Exchange (LME) was up 0.2% to $8,889.5 per metric ton as of 0156 GMT.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 rose 1.1% to 73,800 yuan ($9,991.23)a ton.

LME aluminium CMAl3 was relatively unchanged at $2,493 a ton, nickel CMNI3 fell 0.3% to $15,065, zinc CMZN3 lost 0.2% to $2,835, tin CMSN3 slid 0.2% to $29,060, while lead CMPB3 was 0.2% higher at $1,926.

SHFE aluminium SAFcv1 was down 1.5% to 19,600 yuan a ton, nickel SNIcv1 fell 1.5% to 122,520 yuan, zinc SZNcv1 retreated 1.3% to 24,465 yuan, lead SPBcv1 was relatively unchanged at 16,730 yuan, and tin SSNcv1 rose 1.7% to 247,310 yuan.

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(Reporting by Violet Li and Mei Mei Chu; Editing by Janane Venkatraman)

((Violet.Li@thomsonreuters.com;))

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