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METALS-Metals on standby ahead of U.S. FOMC meet

MELBOURNE, Sept 20 (Reuters) - London metals were trapped in a tight range on Wednesday ahead of a U.S. Federal Reserve monetary policy meeting which may spell out the near-term direction for the dollar.

FUNDAMENTALS

* LME COPPER: London Metal Exchange copper was up 0.2 percent at $6,551 a tonne by 0206 GMT, having closed the previous session little changed. Volumes were exceedingly light at barely 400 lots of turnover.

* SHFE COPPER: Shanghai Futures Exchange copper edged up 0.1 percent to 50,790 yuan ($7,730) a tonne.

* LME ALUMINIUM: LME aluminium held gains after it rallied 1.9 percent on Tuesday on prospects of tighter supply from China as producers cut output over winter to help clear polluted skies.

* LEAD PREMIUMS: Premiums for LME lead in China's bonded zones jumped $10 to $170-$190 amid tightening domestic supply. <PB-BMPBW-SHMET> Lead imports to China have been profitable since early August, fuelled partly by environmental inspections that caused some plants to shut and solid demand from the battery sector.

* INSG: The global nickel market tipped into a wider deficit in July as demand from top stainless steel producer China surged, data from the International Nickel Study Group showed on Wednesday.

* US ECONOMY: U.S. Senate Republicans have reached a tentative budget deal that could allow tax reform legislation to eliminate as much as $1.5 trillion in revenues over 10 years through tax cuts, raising the odds that their planned tax overhaul would expand the federal deficit.

* USD: The dollar edged up against a basket of currencies on Wednesday as investors awaited the outcome of the Federal Reserve's meeting at which it was expected to announce plans to trim its $4.2 trillion in bond holdings.

* JAPAN ECONOMY: Booming shipments of cars and electronics in August drove up Japan's exports at the fastest pace in nearly four years, further evidence that overseas demand is strong enough to support healthy economic growth.

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MARKETS NEWS

* Asian stocks were mostly steady on Wednesday after Wall Street again rose to record highs, although movements were limited as a wait-and-see mood prevailed before the Federal Reserve reveals its monetary policy stance later in the day.

DATA/EVENT AHEAD (GMT)

0600 Germany Producer prices Aug

0830 Britain Retail sales Aug

1400 U.S. Existing home sales Aug

1800 U.S. Federal Reserve releases policy statement

1830 Fed Chair Janet Yellen holds news briefing

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 = 6.5703 Chinese yuan renminbi)

(Reporting by Melanie Burton; Editing by Richard Pullin)