DAX 40, AUD/USD and copper prices bounce off support
Technical analysis of the DAX 40, AUD/USD and copper prices as they bounce off support.
Macro update
Nvidia earnings ignite global equity rally:
Asian markets surged after Nvidia posted third-quarter (Q3) revenue far above expectations and signalled robust cloud AI-chip demand, easing concerns over an emerging AI bubble.
Dollar and yields firm ahead of US jobs data:
The US dollar strengthened and Treasury yields edged higher as investors awaited delayed employment figures, amid growing worry that the Federal Reserve (Fed) may hesitate before cutting rates.
China lags despite upbeat global sentiment:
While tech-driven gains lifted markets in South Korea, Japan and Taiwan, mainland Chinese stocks and the Hang Seng Index slipped as the PBoC held lending rates steady for a sixth consecutive month, reflecting lingering recovery concerns.
Growth–inflation backdrop remains uneven:
The International Monetary Fund (IMF) expects global growth of around 3.2% in 2025, with inflation trending lower but risks tilted to the upside due to policy uncertainty and external pressures.
Yen weakens despite risk-on mood:
The Japanese yen softened as expectations of further fiscal stimulus and prolonged low rates in Japan undercut its traditional safe-haven appeal, even as broader risk sentiment improved.
Commodities edge higher in risk-on trade:
Oil and commodity prices rose modestly alongside improved appetite for risk, though volatility persists amid ongoing macro and policy uncertainty.
DAX 40 bounces off support
The DAX 40 index rallied on Nvidia's tenth straight earnings beat but so far remains below its 200-day simple moving average (SMA) at 23,546.
It and the 5 and 11 September lows at 23,565-to-23,569 need to be exceeded for the bulls to enter the fray on a more sustained basis.
Potential slips may find support around the mid-September low at 23,283.
DAX 40 daily candlestick chart
AUD/USD hovers above support zone
AUD/USD swift drop from last Thursday's $0.6580 high has taken the cross to this week's $0.6451 low, made marginally above its late September $0.6521 low.
If fallen through, the $0.6500 region is expected to be revisited.
Minor resistance comes in around the 21 October high at $0.6525.
AUD/USD daily candlestick chart
Copper bounces off support
The price of copper is short-term consolidating above its August-to-November uptrend line at $4.9718 and its 17 November low at $4.9535.
A rise above Wednesday's high at $5.0545 is needed for the mid-October high at $5.0753 to be reached. Only if also overcome, will the November peak at $5.1625 be back in sight.
Copper daily candlestick chart
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