Copper rallies on solid China data, dollar ekes out gains

Copper futures rose over one percent in American trade following upbeat inflation data from China, the world's largest metals consumer, while the dollar index inched up following labor and inflation data. 

As of 01:34 GMT, copper futures due in September rose 1.20% to $278.40 a pound, while the dollar index added 0.13% to 95.21 against a basket of major currencies. 

Earlier data from China, which accounts for 40% of global copper demand, showed consumer prices rose 2.1% y/y in July, a four-month high, up from 1.9% in June, and beating estimates of 2.0%, while producer prices rose 4.6%, slowing down from 4.7% and beating estimates of 4.4%. 

US Labor, Inflation Data 

Earlier US data showed producer prices were unchanged in July, compared to a 0.3% increase in June, and missing estimates of 0.2%. 

Core prices rose 0.1%, slowing down from 0.3% in June, and also missing estimates of 0.2%. 

US unemployment claims fell surprisingly by 6 thousand to 213 thousand from 219K, beating expectations of an increase to 220K.

Continuing claims for the week ending July 28 rose 29 thousand to 1.755 million from 1.726 million, missing expectations of 1.730 million.