Updates prices as of 1549 GMT

By Polina Devitt

LONDON, Sept 19 (Reuters) -Copper prices hit their highest levels in two months and aluminium the highest in three on Thursday after a long-awaited interest rate cut by the U.S. Federal Reserve weakened the dollar and gave support to growth-dependent metals.

Three-month copper on the London Metal Exchange CMCU3 was up 1.3% to $9,518.50per metric ton by 1549 GMT after hitting $9,586.5, its highest price since July 18, and stumbling upon resistance from the 100-day moving average.

The U.S. currency fell, making dollar-priced metals more attractive for buyers using other currencies, as the Fed kicked off its monetary easing cycle on Wednesday with a larger-than-usual half-percentage-point reduction. FRX/

"There is a lot of debate on how to interpret the size of this rate cut because one can see it in two ways," said Dan Smith, head of research at Amalgamated Metal Trading.

"You can argue that it's good news. On the other way, you can argue that the Fed felt the need to act quickly to support the economy and that this signals that some weakness we are not yet aware of is coming. For now, the bullish interpretation is winning (for copper)."

Smith also said some algorithmic computer models that place buy and sell orders largely on momentum signals had switched to bullish mode.

China's economy, however, continues to send mixed signals for copper as the construction sector in the leading metals consumer struggles, although demand from its electrical sector is rising.

China's yuan closed near a 16-month high versus the dollar on Thursday on hopes that the Fed's easing offered Beijing leeway with its own monetary policy.

With seasonal restocking activity ahead of China's October Golden Week holiday, the Yangshan copper import premium SMM-CUYP-CN reached $67, the highest since the start of 2024. It was at a discount in July.

LME aluminium CMAL3 added 0.2% to $2,540a ton after hitting $2,569, its highest price since June 13.

Zinc CMZN3 increased 1.5% to $2,929, nickel CMNI3 rose 0.6% to $16,320, lead CMPB3 climbed 1.7% to $2,072.50 and tin CMSN3 moved 1.0% higher to $31,810.

Reporting by Polina Devitt in London; additional reporting by Siyi Liu in Beijing and Mai Nguyen in Hanoi; editing by Barbara Lewis, Shreya Biswas, Alexandra Hudson and Paul Simao

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