Nickel yesterday traded with the positive node and settled 1.03% up at 903.40 continued rising as market expectations on implementation of further stimulus measures by the Fed and the ECB rose. French President Francois Hollande and German Chancellor Angela Merkel announced to do everything to preserve the euro after a conference call. Nickel continued a upward trend influenced by the European leaders’ statements to save the euro on weekend. Market expectations on implementation of further stimulus policies by the Fed and ECB at this week’s policymaking meeting also rose. In response, nickel recovered from the low of 888.2 after opening at 895.3, and finally settled at 903.4. On July 30, Spain’s 2Q GDP growth fell 1.0% YoY and down 0.4% from the previous quarter, within market expectations. The continued deterioration of Spain’s economy pushed US dollar index to touch an intraday high of 82.87. Since US economic data released last Friday turned out positive, the Fed will likely raise economic expectations at its policymaking meeting. As such, the US dollar index may go up further, dampening base metal markets. The slowdown in Europe and China will also weaken metal demand. Both the Fed and ECB will hold policymaking meeting this week, and market should remain cautious before the meetings. For today's session market is looking to take support at 892.5, a break below could see a test of 881.7 and where as resistance is now likely to be seen at 909.8, a move above could see prices testing 916.3.

Trading Ideas:

Nickel trading range for the day is 881.73-916.

Nickel gained influenced by the European leaders’ statements to save the euro on weekend.

Indonesia nickel mining, exports mostly halted by new rules

Japan's imports of nickel ore from Indonesia grew more than four times from year earlier to 136,600 tns in June