[Ni] SMM Morning Review - 2009/10/23 Nickel Market

SHANGHAI, Oct. 23 (SMM) -- LME nickel prices opened at USD 19,625/mt yesterday, and later hit the daily high of USD 19,718/mt, but then fell to USD 19,100/mt negatively affected by a technical rebound in the US dollar index, and closed at USD 19,250/mt finally.

    The US dollar index rebounded to 75.51 technically yesterday. China's GDP growth rate reached 8.9% in 3Q, and China has no problem to reach the annual target of 8% economic growth, and as the largest consumer of industrial metals, China's favorable economic data helped offset the negative impact from rising US dollar index on base metal prices.

    The US dollar will remain weak in the long run, and the US dollar index fell back to 75, stimulating base metal prices to rally. LME nickel prices will advance further, with the moving range of USD 18,950-19,550/mt.

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