DAX 40 remains bid while AUD/USD nears key resistance and copper price rallies
Technical analysis of the DAX 40 as it remains bid while AUD/USD nears key resistance and the copper price rallies.
Macro update
US stocks rise on renewed rate-cut expectations:
Equities closed higher after ADP and ISM services data strengthened expectations of a December Federal Reserve (Fed) rate cut, with markets pricing an 89% probability of a 25bp move.
Shutdown-driven data gaps muddy the outlook:
The record 43-day US government shutdown has delayed major releases, forcing investors to lean more heavily on private-sector indicators ahead of the Fed’s decision.
Small caps extend outperformance:
The Russell 2000 jumped nearly 2%, building on last week’s 5.5% gain as investors positioned for easing and a stronger 2026 earnings backdrop.
Nikkei climbs on robotics momentum:
Japan’s Nikkei 225 rose more than 1%, driven by double-digit gains in Fanuc, Yaskawa and Nabtesco after Fanuc announced a robotics partnership with Nvidia.
Asian FX steadies as officials intervene:
The US dollar's recent slide paused after signs of discomfort from Asian policymakers, with Chinese and Japanese authorities acting to slow currency moves and long-dated JGB yields easing from recent highs.
DAX 40 remains bid
The DAX 40 index still has the 24,000 region in its sights while the 200-day simple moving average (SMA) at 23,512 provides support, together with the 1 December low at 23,434.
DAX 40 daily candlestick chart
AUD/USD nears key resistance
AUD/USD saw a swift reversal off its 21 November low at $0.6422 and is fast approaching its late September-to-October highs at $0.6617-to-$0.6629 which are expected to act at least as interim resistance.
Potential slips may find support around the $0.6580 mid-November high.
AUD/USD daily candlestick chart
Copper rally has further to run
The price of copper is still rallying with the $5.4590-to-$5.4685 mid-July lows being next in line. Another potential upside target is the 11 July trough at $5.4733.
Minor support may be found around the 1 December high at $5.3625.
Copper daily candlestick chart
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