Copper prices ease ahead of US Fed rate decision

LONDON: Copper edged lower ahead of an expected US Federal Reserve interest rate rise later on Wednesday but solid Chinese economic data limited losses and lifted nickel from a one-year low.

"The Chinese data will give some light support," said a metals trader. "I guess all markets today will sit and wait to see what the Fed says, then see what the dollar does."

A rate rise is expected to push industrial metals prices lower because the dollar would likely strengthen, making dollar-denominated metals more expensive for holders of other currencies, said ABN AMRO analyst Casper Burgering.

Higher rates of return in the United States would also lure investment away from emerging economies, he said.