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METALS-Weaker U.S. dollar pushes copper into the black

SYDNEY, July 21 (Reuters) - A weak dollar helped lift copper prices in early Asian trading on Friday, reversing an overnight dip.

The dollar index, which tracks the greenback against a basket of six major rivals was priced near its lowest level since August 2016.

A weaker dollar makes U.S. dollar-denominated commodities such as copper cheaper for investors using other currencies.

"The weak dollar will bring out buyers, some of whom might otherwise stick to the sidelines," a trader in Perth said.

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange was up 0.3 percent at $5,981 a tonne by 0100 GMT, reversing a modest loss in the previous session.

* SHANGHAI COPPER: The most-traded copper contract on the Shanghai Futures Exchange opened 0.2 percent firmer at 47,790 yuan ($7,072.67) a tonne.

* COPPER DEFICIT: The global world refined copper market showed a 53,000 tonnes deficit in April, compared with an 18,000 tonnes deficit in March, the International Copper Study Group (ICSG) said.

* ALUMINIUM OUTPUT UP: Daily average primary aluminium output excluding China rose to 70,300 tonnes in June, from 70,000 tonnes in May, data from the International Aluminium Institute (IAI) showed.

* STEEL TALKS: Seeking a more positive spin on U.S.-China economic talks viewed as ending in discord, China said on Thursday that the two sides agreed to "active and effective measures" to reduce global excess steel production capacity.

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MARKETS NEWS

* The euro held near two-year highs against the dollar on Friday after the head of the European Central Bank said tapering of its stimulus will be on the table this autumn, while a solid global economic outlook kept Asian share prices near decade highs.

* Oil settled lower on Thursday in choppy trading, as nagging worries about abundant global crude supplies sank prices after an early rally boosted Brent above $50 per barrel for the first time since June 7.

DATA/EVENTS

1430 U.S. ECRI weekly index

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.7570 Chinese yuan renminbi)

(Reporting by James Regan; Editing by Richard Pullin)