DAX 40 hits all-time high as AUD/USD drops to 10-month low and copper price slips

Macro update

Nvidia turmoil rattles chip stocks and US futures: Nvidia shares fell as much as 8.8% in after-hours trading following reports that its board had met to consider whether to remove chief executive Jensen Huang over allegations of an affair with a suspected Chinese spy. S&P 500 e-mini futures fell 0.5% and Nasdaq futures slipped nearly 1%.

Asian technology shares retreat as Nvidia fallout spreads: Taiwan’s benchmark index dropped 2.6% and South Korea’s Kospi fell 0.9%, pulling MSCI’s Asia-Pacific ex-Japan index 1.2% lower. Japan’s Nikkei reversed earlier gains to close down 0.7%, with Nvidia suppliers Ibiden and Advantest falling 8.32% and 4.64% respectively.

Dollar reaches 19-month high as Fed hike expectations rise: The dollar index gained 0.1% to 102.98, its highest level since April 2025, as hotter-than-expected October inflation and hawkish Federal Reserve comments lifted the probability of a 25-basis-point December rate hike to 90.8%. The euro and sterling weakened to $1.1080 and $1.3259 respectively.

Yen hovers near 160 as intervention fears return: The dollar slipped 0.03% to ¥159.74 after briefly reaching a more than two-month high. BOJ board member Toichiro Asada warned against raising rates prematurely, while Japan’s top currency diplomat Atsushi Mimura said it was too soon to dismiss the prospect of intervention seen during the summer.

Oil falls as geopolitical risk premium fades: Brent crude fell 1% to $91.87 a barrel as progress in Russia-Ukraine peace talks and expectations that the Iran war will not escalate before next week’s US-China summit reduced supply-risk concerns. Rising OPEC+ output and a 9mn-barrel increase in US crude inventories also added to oversupply worries.

Gold slips to more than one-week low as dollar strengthens: Spot gold fell 0.2% to $3,977.99 an ounce under pressure from a firmer dollar and rising expectations of higher interest rates ahead of Friday’s US PPI data. Bitcoin and ether also weakened, each falling around 1% to $73,548.43 and $2,046.72 respectively.

DAX 40 hits record high 

The DAX 40 has hit a new all-time high with the 27,000 mark being eyed. Previous highs such as the 5 November peak at 26,693 and, more importantly, the August highs at 26,618-to-26,573 may now act as support.

Short-term outlook: bullish while above the 9 November high at 26,276

Medium-term outlook: bullish while above the 6 November low at 25,618

DAX 40  daily candlestick chart

AUD/USD drops to 10-month low

AUD/USD's fall through its March 2026 low at $0.6834 doesn't bode well for the bulls with further downside pressure likely to be seen and potentially the early January high at $0.6766 and the 38.2% Fibonacci retracement of the 2025-to-2026 advance at $0.6755 being reached.

Good resistance now sits between the March and June lows at $0.6834-to-$0.6865. Further up resistance may be spotted between the July-to-October lows at $0.6894-to-$0.6922.

Short-term outlook: bullish while above the 4 November $0.6954 low

Medium-term outlook: neutral while above the $0.6894 mid-October low but below the $0.7068 late October high, a rise above which would turn our forecast bullish

AUD/USD daily candlestick chart

Copper price remains under pressure

The price of Copper remains under pressure and nears its mid-July-to-November lows at $6.1324-to-$6.1208. In case of this support area giving way, the May low at $6.0806 may be reached next, perhaps followed by the June-to-July lows at $5.9835-to-$5.8951.

Resistance may be spotted between the late July and September lows at $6.2206-to-$6.2363 ahead of the 200-day simple moving average (SMA) at $6.2977 and the 22 October low at $6.3021. Further resistance sits between the 1 October low and 4 November high at $6.4148-to-$6.4152.

Short-term outlook: bearish while below the 9 November high at $6.3439

Medium-term outlook: bearish while below the 9 November high at $6.3439

Copper daily candlestick chart