Nickel settled down -0.57% at 844.7 as prices seen under pressure with market concerns that the Fed will taper off QE3 soon growing. China’s trade surplus hit USD 33.8 billion in November, its highest since February 2009, with exports exceeding both forecasts and October’s levels and staging a spike of 12.7% YoY. Imports, however, fell short of expectation and previous data, growing 5.3% from a year ago.US non-farm employment data released last Friday topped expectations, and US November unemployment rate dropped a new low of 7.0%, driving up market confidence. LME nickel opened at USD 13,753/mt, then rose to USD 13,875/mt, with market concerns that the Fed will taper off QE3 soon growing. In this context, LME nickel prices rolled back early gains and closed at USD 13,785/mt, up USD 51/mt. As the US nonfarm payroll data beat forecasts and jobless data fell hit a 5-year low, Fed officials changed their tone towards the QE reductions, making it clear that the QE wind-down would be discussed at policy meetings in the futures. However, this did not cause panic in the market. The US dollar index climbed but soon fell back down, while commodities and the US stocks registered increases. This was probably because investors have admitted the Fed would finally exit from its stimulus measures and would unlikely raise short-term interest rate even if it decides to start slowing the asset purchases. The University of Michigan Consumer Confidence Index also advanced to 82.5 in December, better than expectation.  Now Nickel is getting support at 839.7 and below same could see a test of 834.7 level, And resistance is now likely to be seen at 853.6, a move above could see prices testing 862.5.

Trading Ideas:

Nickel trading range for the day is 834.7-862.5.

Nickel prices seen under pressure with market concerns that the Fed will taper off QE3 soon growing.

US unemployment rate dropped to 7%, and the US Federal Reserve had expected the rate would fall to 7% at the end of 2013.

China’s trade surplus hit USD 33.8 billion in November, its highest since February 2009, with exports exceeding both forecasts and October’s levels