Nickel prices fell mildly on Wednesday as the dollar rose against most major rivals while investors assess latest US inflation data and its impact on the Federal Reserve's policy decisions.
Chinese Economy
Official data showed Chinese GDP grew by 4.5% in the first quarter of the year after authorities moved to ease Covid 19 restrictions and open up the economy.
Most analysts expected only a 4% growth rate according to Reuters, compared to 2.9% in the fourth quarter.
On a quarterly basis, Chinese growth came at 2.2% in the first quarter.
The government put a 5% growth target this year, a rather modest number after missing last year's target by a large margin.
Following the data, markets expect improvements in demand on industrial metals and commodities.
Dollar and Fed
Dollar's decline relieves pressure on dollar-denominated commodities such as Nickel as they become cheaper to holders of other currencies.
Markets are also closely following corporate results for the first quarter of the year, starting with banking results.
Nickel is used heavily by the car industry for its role in electric car batteries, and it's also used in the steel industry.
Otherwise, Atlanta Fed President Raphael Bostic said the Federal Reserve still needs to increase interest rates by 25 basis points in May.
He said after such a decision, the Fed might cease any such moves and hold rates for a long term as it assess the policy's impact on the economy.
The dollar index rose 0.1% as of 14:50 GMT to 101.8, with a session-high at 102.2, and a low at 101.6.
Nickel spot prices fell 1.2% as of 15:01 GMT to $24.6 thousand a tone.