Copper prices fell in London on Monday as the dollar held on to last week's gains and the market awaited Chinese data expected to shine a light on demand prospects in the world's biggest metals consumer.

Three-month copper on the London Metal Exchange (LME) was down 0.8% at $8,396 a metric ton by 1133 GMT after touching its lowest since Dec. 13 at $8,377.50.

"The U.S. dollar remains firm as market expectations for the next U.S. rate cuts are shifting out to May rather than March," said Nitesh Shah, head of commodities and macroeconomic research at WisdomTree. "Base metal prices are facing some downward pressure as a result.

"Later this week we will get Chinese aggregate financing data, which will provide a clue on whether Chinese efforts to stimulate its economy - and by extension commodity demand - are working."

China is due to release December credit lending, trade and inflation data this week. China's yuan hit a more than three-week low against the dollar last week, making dollar-priced metals more expensive for Chinese buyers.

The U.S. inflation report due this week could offer further clarity on the Federal Reserve's monetary policy outlook.

Meanwhile, LME aluminium shed 1.1% to $2,248 a ton, matching its 21-day moving average, after hitting its lowest since Dec. 21 at $2,241.50.

Aluminium stocks in the LME-registered warehouses are at their highest since June after 14,525 tons of arrivals, daily LME data showed.

In other metals, zinc slid by 2.2% to $2,506.50 a ton, lead lost 0.7% to $2,062, tin was down 0.7% at $24,455 and nickel retreated by 1.6% to $16,115.

Monday marks the start of this year's official five-day rebalancing window for holdings of funds that track commodity indexes, adding potential support to nickel and further pressure on aluminium.

The rebalancing, however, has been flagged months in advance, so the impact should be limited, said Ole Hansen, head of commodity strategy at Saxo Bank.

(Reporting by Polina Devitt in London Additional reporting by Siyi Liu and Mei Mei Chu Editing by David Goodman)