Nickel on MCX settled down -1.44% at 696.4 as pressure seen on profit booking after the dollar hit a seven-month high. However downside were limited after Indonesia’s acting energy and mineral resources minister, Luhut Panjaitan, said it was unlikely that the country would relax its export ban on ore. China’s overall exports dropped 10% and imports slipped 1.9% in September, both on a year-on-year basis in dollar-denominated terms.
Describing the international environment as “severe and complicated”, Chinese customs said in a statement that China’s export development continues to face major difficulties amid a decline in trade with its main partners such as the US and ASEAN countries. China’s US-denominated trade balance at $42 billion in September was below the forecast $53.1 billion. The latest trade numbers raised concerns about the sustainability of China’s economic recovery while highlighting the consistent slowdown in global demand.
Several voting Federal Reserve policymakers judged a rate hike would be warranted "relatively soon" if the U.S. economy continued to strengthen but doubts on inflation remained, according to the minutes of the Fed's September policy meeting released on Wednesday. China's economy performed better than expected in the third quarter and the country's debt risks are under control, Premier Li Keqiang said.
In news, Chinese banks are stepping up lending to midsize metals traders in Singapore, pushing into a gap in the market as U.S. regulations and fading appetite for risk drive Western rivals to focus on larger commodity merchants, metals industry sources said. Technically market is under long liquidation as market has witnessed drop in open interest by -8.25% to settled at 12352, now Nickel is getting support at 691.8 and below same could see a test of 687.3 level, and resistance is now likely to be seen at 701.5, a move above could see prices testing 706.7.
--Nickel trading range for the day is 687.3-706.7.
--Nickel on MCX settled down -1.44% as pressure seen on profit booking after the dollar hit a seven-month high.
--However downside were limited after Indonesia’s Luhut Panjaitan, said it was unlikely that the country would relax its export ban on ore.
--Nickel daily stocks at Shanghai exchange came down by 447 tonnes.
Courtesy: Kedia Commodities