Nickel settled -0.54% down at 879.20 as China reported trade deficit of USD 880 million in March, worse than a trade surplus of USD 15.4 billion expected. Shanghai base metals gains thus contracted, but nickel prices were barely affected. LME nickel prices opened at USD 16,205/mt, and then inched up, once touching USD 16,345/mt. The market was focused on the minute of the US Federal Reserve policy meeting, and the minute shows some officials proposed the Fed should slow or stop assets purchasing by the end of the year, which allowed the US dollar index to rise. Overnight markets were majorly affected by China's import and export data. China unexpectedly reported trade deficit of USD 880 million in March, much lower than expected levels or the previous month. That is because import volume rose by 14.1% YoY, which is much higher than the 6% expected, but export only grew by 10%, with the figure lower than expected for the first time in 4 months. Meanwhile Nickel on the LME could face near-to-mid-term pressure, after an Indonesian government official says the country may not ban raw mineral exports outright in 2014, representing a softening in Jakarta's previous stance. If Indonesia relaxes the legislation, it could ease concerns over availability of nickel and aluminum raw materials to China's buyers and alter supply expectations for 2014. Indonesia is a major supplier of both metals' raw materials to China, the world's biggest base metal consumer. For today's session market is looking to take support at 872.9, a break below could see a test of 866.6 and where as resistance is now likely to be seen at 888.2, a move above could see prices testing 897.2.

Trading Ideas:

Nickel trading range for the day is 866.6-897.

Nickel dropped as dollar index rose after minute shows some officials proposed Fed should slow or stop assets purchasing by the end

China reported trade deficit of USD 880 million in March, worse than a trade surplus of USD 15.4 billion expected

The data showed that Chinese imports rose 14.1% from a year earlier in March, blowing past expectations for a 6% increase.