Nickel settled down -0.57% at 1155.4 as the US dollar index rose after Fed Chairwoman announced they will likely hike interest rates in early 2015. Nickel prices dropped as growing LME nickel inventories also weigh on LME nickel prices. Data from the National Bureau of Statistics (NBS) showed that China’s GDP grew by 7.5% YoY in the second quarter, in line with the 2014 GDP growth target and higher than the expected 7.4% rise and increase in Q1. This suggested that a flurry of mini-stimulus measures unveiled by the Chinese government over the past few months have had a positive impact.  Meanwhile, China’s economy expanded at a 7.4% rate in the first half of this year. The country’s urban fixed asset investment increased 17.3% YoY in the first six months, with the growth rate up for the first time in 9 months. Large industrial value added for June rose 9.2% YoY, up from 8.8% in May and setting a refreshed high for this year. Retail sales of consumer goods increased 12.4% YoY in June, slightly below the estimated 12.5% growth and June’s level. Meanwhile, US industrial output for June grew 0.2% YoY in June, up for the fourth month in five, but missing expectations. The country’s PPI also rose 0.4%, up from a 0.2% fall in May, boosted by a 2.1% rise in energy prices.  Technically market is under fresh selling as market has witnessed gain in open interest by 2.06% to settled at 5958 while prices down -6.6 rupee, now Nickel is getting support at 1148 and below same could see a test of 1140.7 level, And resistance is now likely to be seen at 1164.3, a move above could see prices testing 1173.3.        

Trading Ideas:

Nickel trading range for the day is 1140.7-1173.3.

Nickel prices dropped as the US dollar index rose after Fed Chairwoman announced they will likely hike interest rates in early 2015.

Nickel prices dropped at the end of trading, and growing LME nickel inventories also weigh on nickel prices.

US industrial output for June grew 0.2% YoY in June, up for the fourth month in five, but missing expectations.