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Nippy has a few different meanings other than this one, presumably related to chilly weather. I'm going to offer a ''possible'' origin for this weather usage, and I want someone who knows to strike this if it is wrong. The pogonip is a form of dense fog that contains particles of frozen water. Pogonip is a native American word possibly originating in the Southern Paiute language. Some sources say it comes from the Shoshone word meaning "cloud" (payinappih). The pogonip can form in deep mountain valleys, and it can be unpleasant, if not hazardous to breathe. I could easily see a connection between the pogonip and the expression "It's nippy".

The linked Online Etymology Dictionary indicates that this weather related useage goes back to 1898, but does not name the primary source for this date.

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14y ago

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