SYDNEY, June 21 (Reuters) - London copper was trading flat in early Asian trade on Wednesday, capped by a stronger dollar that pushed prices lower overnight.
The dollar was at 97.715 against a basket of currencies, having touched a five-week peak overnight, making it attractive for sellers of copper in other currencies to unload positions and book arbitrage profits.
“Currency moves are behind what’s going on in copper today,” a trader in Sydney said. “It’s a dollar play at the moment.”
* LONDON COPPER: Three-month copper on the London Metal Exchange was little changed at $5,660 a tonne by 0130 GMT after falling 1.2 percent in the previous session.
* SHANGHAI: The most-traded copper contract on the Shanghai Futures Exchange slipped by 0.9 percent at the open to 45,490 yuan ($6,667) a tonne. * CHINA TIN: China’s Yunnan Tin Co Ltd, the world’s biggest tin producer, says it has received government approval for so-called “processing trade”, churning out refined metal for export using concentrate shipped in from abroad.
* LME tin rose by 0.1 percent to $19,650 a tonne. ShFE tin was down 0.5 percent at 143,150 yuan ($20,980.51).
* FRESH MONGOLIA HUNT: Anglo-Australian miner Rio Tinto has started new exploration work in Mongolia’s Gobi desert after a gap of around five years, in a sign that Mongolia is having some success at bringing back foreign investors.
* NICKEL: LME nickel edged up 0.1 percent to $8,900 a tonne after shedding 2.1 percent overnight. Traders said profit-taking had set in after prices received a fillip on Monday from news that about a dozen newly constructed nickel smelters in Indonesia have been halted.
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* A renewed slump in oil prices to seven-month lows put Asian investors on edge on Wednesday, overshadowing a decision by U.S. index provider MSCI to add mainland Chinese stocks to one of its popular benchmarks.
DATA AHEAD (GMT) 1400 U.S. Existing home sales May
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 = 6.8230 Chinese yuan renminbi)
Reporting by James Regan; Editing by Richard Pullin