Copper prices fell on Wednesday in response to a stronger U.S. dollar, paring gains that drove the market to one-month highs on expectations leading commodities consumer China will relax monetary policy to spur economic growth.

Benchmark copper on the London Metal Exchange (LME) was down 0.5% at $9,175 a metric ton at 1027 GMT from an earlier $9,314 a ton, the highest since Nov. 12.

"The dollar is dominating trading," a copper trader said, adding that the market was also focused on China's annual Central Economic Work Conference expected to be held this week.

The dollar rose ahead of the release of U.S. inflation data later on Wednesday. It was also boosted by a Reuters report China was considering allowing a weaker currency next year.

A higher U.S. currency makes dollar-priced metals more expensive for holders of other currencies, which would weigh on demand. This relationship is used by funds to trade using buy and sell signals from numerical models.

China earlier this week said it would switch to an "appropriately loose" monetary policy stance, and "more proactive" fiscal levers, signalling it is ready to deploy whatever stimulus is needed to counter the impact of expected U.S. trade tariffs next year.

"China talked about stimulus all year and did very little. They are talking about it again, but we'll have to wait for the detail to see if it's going to make any difference," said Tom Price, analyst at Panmure Liberum.

"But U.S. tariffs next year might prompt China to roll out retaliatory tariffs and its own stimulus to offset the impact."

On the technical front, resistance stands at around $9,314 where the 100-day moving average sits, while support is at the 21-day moving average currently around $9,065.

In other metals, aluminium fell 0.9% to $2,585 a ton, zinc retreated 0.5% to $3,120, lead slipped 0.1% to $2,062, tin was little changed at $29,790 and nickel gained 0.3% to $15,760.

(Reporting by Pratima Desai; editing by Barbara Lewis)