Nickel yesterday settled down -1.55% at 833 tracking weakness in LME prices as pressure seen after LME inventory grew by 162 mt. Although US June durable goods orders, the number of initial jobless claims last week and EU industry growth were all better than expectations, which pushed down the US dollar index to 81.7, nickel and aluminum prices were not boosted, with other base metals performance better. LME nickel prices were boosted by China’s NPI prices, but still met resistance at USD 14,500/mt. Jinchuan did not adjust ex-works nickel prices as LME nickel prices overnight closed up USD 200/mt. In China, funds outstanding for foreign exchange pointed to negative growth in June and interest rates in the market is rising as the month comes to an end. Cloudy monetary policy is jittering investors. Markets are now expecting the PBOC to launch reverse repurchase now that the PBOC has not launched repurchase for six consecutive months.  Germany's IFO Business Confidence Index rose in July, but IFO business expectations weakened slightly to 102.4. This aggravated worries that the country's economy may slip into recession again, but also increased the possibility of further easing monetary policy by the ECB. US economic data released overnight were mixed. Durable goods orders rose more than expected by 4.2% in June, but initial jobless claims in the week ending July 20 were worse than expected. Goldman Sachs cut its forecast for US Q2 GDP growth following these figures, weighing LME base metals prices down. Technically market is getting support at 828.00 and below same could see a test of 823.10 level, And resistance is now likely to be seen at 841.00, a move above could see prices testing 849.10.

Trading Ideas:

Nickel trading range for the day is 823.1-849.1.

Nickel prices ended with losses tracking weakness in LME prices as pressure seen after LME inventory grew by 162 mt

The Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% in June

Core durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase.