Nickel settled up 2.41% at 1153.50 rose to their highest level in four weeks on supply concerns after a Philippines senator filed a bill that would require raw minerals to be processed before exports, boosting expectations the Philippines would implement mining laws similar to Indonesia. Since Indonesia enacted its mineral ore export ban in January, the Philippines has stepped up its nickel ore exports to China, accounting for nearly all of China’s nickel ore imports in July. Nickel ore is feedstock for China’s nickel pig iron sector. Investors were looking ahead to the latest U.S. employment report, due for release on Friday, for further indications on the strength of the recovery in the labor market, a key factor in deciding the future path of monetary policy. Expectations that the Federal Reserve is growing closer to raising interest rates have boosted the dollar against the euro and the yen, as the European and Japanese central banks look likely to stick to a looser monetary policy stance. The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, hit a 13-month high of 83.07 earlier in the day, before trimming gains to last trade at 82.93. A stronger U.S. dollar usually weighs on basemetals, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. Market players are also awaiting the ECB meeting amid mounting expectations that the central bank will announce quantitative easing measures as a way to shore up growth and stave off deflation. Technically market is under fresh buying and getting support at 1135.2 and below same could see a test of 1116.8 level, And resistance is now likely to be seen at 1163.3, a move above could see prices testing 1173.

Trading Ideas:

Nickel trading range for the day is 1116.8-1173.

Nickel rose after a Philippines senator called for an ore export ban in the nickel-rich nation.

The proposed halt is similar to a ban introduced by Indonesia from January that led to a sharp spike in nickel prices and cut other ore exports.

U.S. nonfarm payrolls data due on Friday will be closely watched for further clues about the economy and the outlook for Fed’s monetary stimulus.