LONDON (REUTERS) - - Copper was buoyed on Friday by the weaker dollar, but persistent worries about economic growth and demand in top consumers the United States and China are expected to rein in confidence. "Yesterday people ignored the dollar fall, today they are using it to drive metals up," a metals trader said. "But there is an undercurrent of nervousness in the market, things are not shaping up as expected." The industrial metal fell to a two-week low of $6,318 a tonne on Thursday as the market factored in below consensus readings of manufacturing surveys in the U.S. and China. "The PMI for China showed weaker growth, but was still in the expansionary territory, suggesting that government cooling initiatives are slowing down the economy," ANZ said in a note. "However, according to the National Bureau of Statistics, the official PMI also reflected a weak outlook for exports, given European debt issues and China's abolition of some export tax rebates." Traders said the market would avidly scour the June U.S. jobs report due at 1230 GMT for clues to the health of the world's largest economy. Also on the agenda are factory orders for May at 1400 GMT. PRICES * Three-month copper CMCU3 on the London Metal Exchange was at $6,505 a tonne from $6,335 at the close on Thursday. * Aluminium CMAL3 was at $1,953 a tonne from $1,926. DATA/EVENTS * U.S. June non-farm payrolls due at 1230 GMT, May factory orders at 1400 GMT. * [ECI/US] [ECI/EURO] [ECI/GB] [M/DIARY] [MTL/DIARY] MARKET NEWS * Asian stocks recover after three days of falls but investors remain nervous ahead of a closely-followed U S. job report and due to concerns over the U.S. and global outlook. [MKTS/GLOB] [.N][.EU] * Oil was steady below $73, near three-week lows after a spate of weak manufacturing data renewed worries about slower global economic growth ahead of a key U.S. jobs report. [O/R] * The dollar was on the defensive against the euro, holding near five-week lows, after a big short squeeze in the single currency ahead of U.S. jobs data, while the yen lost ground as the squeeze spilled into Asian trade. [USD/] FUNDAMENTALS * Australia ended a damaging dispute with global miners by dumping its "super profits" tax for a lower resources rent tax backed by key global miners, freeing a hurdle for Prime Minister Julia Gillard to call an early election. [ID:nAUTAX] * Xstrata Ltd (XTA.L: Quote) on Friday reinstated about A$600 million ($508 million) copper mining and exploration projects in Australia after the government watered down the proposed mining tax. * Aluminum Corp of China (Chalco) (2600.HK: Quote) (601600.SS: Quote) has cut spot prices of alumina by 7 percent to 2,650 yuan ($390.8) a tonne.

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