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Monica is a perfectly respectable name, but not really my style. I immediately think of Monica from Friends rather than Monica Lewinsky. Nns are very personal imo so if you want to go with Nikki then by all means do, but don't expect that when outsiders hear the nn Nikki they will automatically assume your daughter's full name is Monica. My real name is Simone & my family nicknamed me Monie (which would go with Monica incidentally). It wasn't the best nn to have admittedly, but the fact that it was given to me by my family made it personal & special. Now Sims has become my nn amongst my friends.

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In short Monica is a nice name & Nikki is fine as a nn.