RTRS:METALS-Copper rises on dollar retreat, China data a worry
* China flash PMI drops to 11-month low in July
* China rolls out measures to address aluminium overcapacity
* Euro hits 1-month high vs dollar
By Susan Thomas
LONDON, July 24 (Reuters) - Copper rose on Wednesday as the dollar retreated and the euro zone unexpectedly bounced back to growth, but signs that China's economy is stalling capped further gains.
Data showed that China's manufacturing engine lost further momentum in July and the job market weakened, a survey showed on Wednesday.
China is a major importer of commodities, including copper. The price of the metal initially fell after the data's release, but soon bounced back as the dollar weakened.
A cheaper dollar makes commodities priced in the unit more affordable for holders of other currencies.
Three-month copper on the London Metal Exchange was around 1 percent higher at $7,093 a tonne by 1130 GMT, after earlier touching a session high of $7,119, its loftiest since June 18. It was last bid at $7,039 on Tuesday.
"Overnight copper got sold on the poor flash PMI release out of China," Marex Spectron analyst George Adcock said.
"As soon as the LME session came in a little bit of volume returned to the market and we reverted straight away to where the dollar was," he said, adding that in the last 10 days, the correlation of copper to the dollar was 93 percent.
The euro rose versus the dollar, buoyed by signs of recovery in the euro zone. Private industry unexpectedly bounced back to growth this month as factories increased output for the first time in well over a year.
In other metals, LME aluminium was almost flat at $1,847 from a last bid of $1,845.
China rolled out stricter controls for its aluminium sector to tackle overcapacity and push for consolidation and restructuring. These include a ban on the construction of new smelting plants at environmentally sensitive zones.
Tin was at $19,615 per tonne from $19,455, zinc was at $1,901 from $1,887, lead was at $2,076 from $2055.5 and nickel was at $14,160 from $14,130.