Updates prices

By Mai Nguyen

Sept 18 (Reuters) -Prices of most nonferrous metals fell in London on Wednesday as investors exercised caution ahead of an expected U.S. Federal Reserve policy decision later in the day.

Three-month copper on the London Metal Exchange CMCU3 was down 0.1% at $9,357 per metric ton by 0732 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 closed up 0.6% at 74,510 yuan ($10,501.02) a ton.

While the Fed is widely expected to lower rates, the size of the cut, whether 25 basis points or 50 bps, was still not clear.

A rate cut often helps boost economic growth and demand for metals, along with pressuring the U.S. dollar.

A softer dollar makes greenback-priced metals cheaper to holders of other currencies.

However, U.S. retail sales unexpectedly rose in August, suggesting that the economy remained on solid footing through much of the third quarter.

"This lessens the need for an aggressive rate cut by the Fed," ANZ analysts said in a note.

"The market is also on edge as it awaits a response from Beijing following another month of poor economic data."

China is the world's biggest metals consumer.

Chinese President Xi Jinping last week urged authorities to strive to achieve annual economic goals, leading to expectations of stimulus measures to bolster a flagging economic recovery.

LME aluminium CMAL3 was nearly flat at $2,524.50 a ton, zinc CMZN3 fell 0.5% to $2,911.50, lead CMPB3 decreased 0.4% to $2,010 and tin <CMSN3 dropped 1.9% to $31,260, while nickel CMNI3 rose 0.3% to $16,230.

SHFE aluminium SAFcv1 rose 0.6% to 19,875 yuan a ton, zinc SZNcv1 increased 0.7% to 23,915 yuan, nickel SNIcv1 edged up 0.1% at 124,370 yuan while lead SPBcv1 dropped 2% to 16,440 yuan and tin SSNcv1 declined 0.9% to 254,630 yuan.

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($1 = 7.0955 yuan)

Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu and Sumana Nandy

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