Firm dollar drags US copper down early, Fed awaited

NEW YORK, Nov 3 (Reuters) - U.S. copper futures fell to a
near two-week low early Tuesday, weighed down by a stronger
dollar, sliding equity markets and caution ahead of the start
of a two-day Federal Reserve policy meeting.

For detailed report on global copper markets, click on
[MET/L]

* Copper for December delivery HGZ9 slips 2.20 cents at
$2.9230 a lb by 10:20 a.m. EST (1520 GMT) on the New York
Mercantile Exchange's COMEX division.

* Ranged from $2.9895 to $2.8950, its lowest level since
Oct. 21.

* COMEX estimated futures volume at 13,491 lots by 9 a.m.

* Copper under pressure from a one-month high in the dollar
versus a basket of currencies .DXY, making dollar-denominated
commodities more expensive for non-U.S. investors. [USD/]

* Additional weight seen from weaker open on Wall Street.
[.N]

* The Federal Open Market Committee begins two-day meeting
on interest rate policy and are expected to keep interest rates
close to zero.

* Market awaits monthly U.S. employment data on Friday,
where unemployment rate is forecast at 9.9 percent in October
from 9.8 percent in September, while non-farm payrolls seen
falling to 175,000 from a decline of 263,000.

* Copper's early losses trimmed after data showed U.S.
factory orders climb 0.9 percent in September, while
inventories continued to shrink. [ID:nN02454734]

* Upbeat factory orders data comes on heels of strong
manufacturing report on Monday. [ID:nN02309157]

* London Metal Exchange warehouse stocks increased by 1,625
tonnes to 373,800 tonnes on Tuesday.

* COMEX copper warehouse stocks added 251 short tons on
Monday to 62,200 short tons.

* On the supply-side, striking workers at Chile's Spence
copper mine to resume government-mediated talks with owner BHP
Billiton (BLT.L) (BHP.AX). [ID:nN31448464]

* LME three-month copper MCU3 last traded at $6,430 a
tonne, down $120 from Monday's close.
(Reporting by Chris Kelly; Editing by Marguerita Choy)