Copper slides 1% as dollar shakes off dust

Copper futures gave up over one percent in American trade as the dollar index rebounded from December 17, 2014 lows for the fifth session out of six, following earlier data from China, the world's largest metals consumer, and ahead of the biannual testimony of Federal Reserve Chair Jerome Powell before Congress. 

As of 02:34 GMT, copper futures due on May 15 fell 1.07% to $322.65 a pound from the opening of $326.14, while the dollar index rose 0.12% to 89.85 from the opening of 89.74. 

Earlier Chinese data showed the CB leading Index accelerated to 1.6 in January from December's 1.4 reading. 

Federal Reserve Chair Jerome Powell will testify before the Senate Committee on Banking, Housing, and Urban Affairs and to the House Committee on Financial Services and submit a report on monetary policy and Fed's outlook.  

Federal Reserve Bank of New York President William Dudley is due to participate in a panel discussion about the Fed's balance sheet at the United States Monetary Policy Forum, in New York, while Federal Reserve Bank of Cleveland President Loretta Mester will participate in a panel discussion about monetary policy objectives at the United States Monetary Policy Forum, in New York.

Federal Reserve Bank of San Francisco President John Williams will speak about economic and monetary policy at the City Club of Los Angeles, while earlier this week, the Federal Reserve released the minutes of the January 30-31 meeting, at which policymakers held interest rates unchanged between 1.25% and 1.50%, while expecting inflation to settle at 2% in the next 12 months.

Markets now look forward to the Fed's March 20-21 meeting, the first under new Chair Jerome Powell, at which policymakers will release their three-year forecasts for inflation, unemployment, growth, and interest rates.