Copper hit the highest level in two months on Friday on optimism about further stimulus from top metals consumer China following a jumbo U.S. interest rate cut, while aluminium pulled back on producer selling.

Three-month copper on the London Metal Exchange was up 0.3% at $9,540.50 per metric ton at 0945 GMT, having touched $9,599.50, the highest since July 18.

Copper pared gains after some profit taking ahead of the weekend and a firmer dollar index, which makes commodities priced in the U.S. currency more expensive for buyers using other currencies.

The U.S. central bank kicked off its monetary policy easing cycle on Wednesday with a larger-than-usual half-percentage point reduction, lifting global risk assets.

"China's central bank has largely held off doing broad-based stimulus because of rate differentials, but now that obstacle has been removed, it can start stimulating," said Nitesh Shah, commodity strategist at WisdomTree.

China unexpectedly left benchmark lending rates unchanged at the monthly fixing on Friday, but analysts said a rate cut would likely be included in a larger policy package.

LME copper has gained more than 7% since sinking to a three-week low on Sept. 4, but it is still down 14% since hitting a record peak in May.

"There is a risk of a short-term fall-back after having a sentiment-led rally," Shah added.

Also supporting copper were further declines in inventories in warehouses registered with the Shanghai Futures Exchange amid a pick-up in seasonal demand. Data on Friday showed stocks have more than halved since early June.

LME aluminium shed 0.7% to $2,521 a ton as producers took advantage of the recent rally to sell at higher prices, a trader said.

Among other metals, LME zinc fell 0.8% to $2,907.50, nickel gained 0.8% at $16,470, lead added 0.4% to $2,082.50 and tin climbed 1.6% to $32,340.

(Reporting by Eric Onstad; Editing by Sharon Singleton)