Copper rose more than 3 percent on Thursday as Chinese data helped reduce worries over monetary tightening and as the dollar lost ground versus the euro ahead of an EU summit. "A weaker dollar means metals are cheaper and commodities are going to be a good bet over the rest of the year," a London-based trader said. "There are still worries over monetary policy, but people focus on what makes them money, so if they want prices to go up they're going to focus on supply worries." In China, whose markets have been pressured by worries about a clampdown on excessive credit, data showed banks lent a stronger than forecast 1.39 trillion yuan of loans in January. Other data showed consumer inflation moderated more than expected in the year to January, though producer price inflation accelerated. China is the world's top base metals consumer. The dollar fell against the euro amid growing speculation that European Union leaders will thrash out an economic rescue package for debt-laden Greece. A weaker dollar makes dollar-priced metals cheaper for non-US investors. PRICES * Three-month copper on the London Metal Exchange was trading at $6 740 (R51 696) a tonne at 10:43 SA time compared with $6 540 at the close on Wednesday. * Aluminium was at $2 063.50 a tonne from $2 030. DATA/EVENTS 15:30 SA time - Weekly US jobless claims MARKET NEWS * The euro rose on Thursday ahead of a key European Union summit that may shed light on a possible rescue package for Greece, while the Australian dollar surged as strong jobs data revived talk of a rate rise as early as March. * Oil climbed towards $75 a barrel on Thursday, extending the previous session's gain of 1 percent, buoyed by an upbeat oil demand growth forecast by the US Energy Information Administration and hopes of a rescue plan for Greece. * US stocks dipped on Wednesday as worries over Federal Reserve Chairman Ben Bernanke's strategy after the economy recovers offset optimism about a possible rescue for debt-burdened Greece. * The euro rose on Thursday ahead of a key EU summit that could lay the groundwork for a rescue of debt-stricken Greece, while Asian stocks gained for a third day, powered by strong economic data from Australia and China. FUNDAMENTALS * Vale, the world's largest iron ore producer, said its fourth-quarter net income rose 7.7 percent, below analysts' estimates, after costs fell and the company made use of a tax credit which offset declining sales. * Global miner Rio Tinto echoed rival BHP Billiton's caution in calling a recovery, and cut its 2009 dividend after reporting its worst second-half profit in three years. * Aurubis, Europe's biggest copper smelter, unveiled a better-than-expected first quarter pretax profit on higher metal prices and said it expected its operating result to improve this fiscal year. TECHNICALS * Copper support was at $6 456 a tonne and resistance at $6 765. The 14-day RSI was at 48.69 * Aluminium support was at $2 010 a tonne and resistance at $2 075. The 14-day RSI was at 41.12. - Reuters

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