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DAX 40 probes support while copper price hits 1-month high and AUD/USD slips
DAX 40 tries to find support while copper price hits 1-month high and AUD/USD slips amid strengthening US dollar.
On Tuesday, global bond markets experienced sharp selling pressure as fiscal concerns intensified, with United Kingdom (UK) gilts particularly affected amid speculation that the Chancellor may introduce new taxation measures in the upcoming Autumn budget.
United States (US) equity markets reopened after Labor Day with declines across all major indices - the Dow Jones fell 0.6%, S&P 500 dropped 0.7%, and Nasdaq 100 declined 0.8% - reinforcing September's reputation as historically the weakest month for American stocks.
DAX 40 tries to hold at support
The DAX 40's sharp fall on Tuesday has taken it to 23,483, close to the August low at 23,381. While this support area holds, a bounce towards the early July low at 23,621 may ensue. Further potential resistance sits at the 4 July low at 23,703.
Failure at 23,621 would be medium-term bearish and likely push the June low at 23,052 to the fore.
DAX 40 daily candlestick chart
AUD/USD dips
AUD/USD's recovery from its $0.6415 22 August low ended at Monday's $0.6560 high with the currency pair slipping to $0.6483.
Sideways trading around the 55-day simple moving average (SMA) at $0.6517 is expected to be seen over the next few days.
A move above the $0.6560 high would eye the August peak at $0.6568 whereas a fall through $0.6483 might lead to the 27 August low at $0.6463 being revisited.
AUD/USD daily candlestick chart
Copper trades in one-month high
The price of copper has been rising over the past week or so and hit a one-month high at $4.6745 on Tuesday.
The next potential upside target is the 200-day SMA at $4.7662.
Minor support below Tuesday's $4.5410 is seen around the 4 August high at $4.4798.
Copper daily candlestick chart
Important to know
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