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METALS-Copper steady as dollar flattens

SYDNEY, July 28 (Reuters) - Copper prices drifted in early Asian trading on Friday with little movement in currency markets, a key driver over recent sessions.

"We're seeing a flat dollar and that's likely to keep things light," said a commodities trader in Perth, Australia.

Copper hit a two-year high earlier this week at $6,400 a tonne as the dollar tracked lower, making dollar-denominated metals cheaper for investors using other currencies.

FUNDAMENTALS

* LME COPPER: Three-month copper on the London Metal Exchange was little changed at $6,329 a tonne by 0134 GMT after trading flat in the previous session.

* SHANGHAI COPPER: The most-traded copper contract on the Shanghai Futures Exchange was flat at 50,150 yuan ($7,438) a tonne.

* GLENCORE: Glencore cut its 2017 output targets after changes in what it extracts at some of its mines, rainfall and maintenance hit production in the first half of the year.

* CHINA ALUMINIUM: Cutbacks by Chinese authorities of illegal capacity at aluminium smelters, which have lifted prices this year, are slowing and may be reversed,

* CHINA DATA: Activity in China's factory sector is expected to have grown again in July, with only a slight slowdown from June's three-month high suggesting momentum in the economy remains strong despite a tighter policy environment. The PMI data is due on July 31 at 0100 GMT.

* COPPER FORECAST: Chilean state copper commission Cochilco forecast average global copper prices of $2.64 per pound in 2017, a slight upward revision from $2.60 previously, due to greater demand in China, a key market.

* VALE COPPER: Brazilian miner Vale SA said it would seek out fresh copper mining options and stop expanding nickel production capacity after second-quarter net income plunged on forex losses, rising costs and weaker iron ore price.

* NICKEL: LME nickel was up 0.02 percent to $10,150 a tonne, while ShFE nickel gained just over 1 percent.

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* Asian stock markets sagged on Friday after U.S. tech shares retreated from recent rallies, though optimism on U.S. corporate earnings and the global economy underpinned overall sentiment.

DATA/EVENTS

0130 Australia PPI Q2

0530 France GDP (INSEE) Q2

0645 France Consumer spending (INSEE) June

0900 Euro Zone Economic sentiment July

1200 Germany CPI July

1230 U.S. GDP Q2

1230 U.S. Employment cost index Q2

1400 U.S. U Mich consumer sentiment July

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 = 6.7410 Chinese yuan renminbi) ($1 = 6.7420 Chinese yuan renminbi)

(Reporting by James Regan; Editing by Richard Pullin)