* Higher dollar triggers profit-taking on long copper

* Premium for cash over 3-month copper contract narrows

LONDON, Sept 25 (Reuters) - Copper prices steadied on Friday after hitting one-month lows in the previous session as the market waited for economic data to shed light on growth and demand prospects and stimulus plans to shore up economic activity.

Manufacturing data, a key indicator of industrial metals demand, from top consumer China is due next week.

Benchmark copper on the London Metal Exchange was up 0.2% at $6,535 a tonne at 1602 GMT.

The metal used widely in the power and construction industries tumbled to $6,449 on Thursday, a drop of more than 5% since Monday when prices hit a 27-month high.

"We're in a news vacuum at the moment and a second wave of the virus is dominating the headlines, creating an environment where we will see dips," said Citi analyst Oliver Nugent.

"The U.S. stimulus package may be passed next month and China's plenary session is due to take place next month. These macro catalysts should make October and November positive months."

CHINA: Plenary sessions generally set the tone and direction for the government's work. President Xi Jinping in July said China will push forward comprehensive deep reforms with greater strength.

UNITED STATES: Democrats in the House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week.

DOLLAR: A higher U.S. currency which makes dollar-priced commodities more expensive for holders of other currencies is weighing on sentiment as it could subdue demand.

Funds using this link to generate buy and sell signals from numerical models have taken profits on long positions this week.

SPREADS: The premium for the cash over the three-month contract eased to $7 a tonne from 26-month highs above $40 a tonne earlier this month on worries about supplies on the LME market.

OTHER METALS: Aluminium was up 0.6% at $1,750 a tonne, zinc was flat at $2,370, lead fell 1.1% to $1,836, tin slipped 1.3% to $17,050 and nickel added 0.1% to $14,275.

(Reporting by Pratima Desai; editing by Emelia Sithole-Matarise, David Evans)