DAX 40 nears record high, copper July highs as AUD/USD stays below resistance
DAX 40 nears its record high amid risk-on sentiment, copper its July highs while AUD/USD is sidelined below its October resistance zone.
Macro update
Tech rally drives Wall Street to new highs:
The S&P 500 gained 0.6% and the Nasdaq 100 advanced 1.1%, both closing at record levels as strength in chipmakers and AI-focused names such as Advanced Micro Devices (AMD) and Dell lifted sentiment. The Dow Jones finished little changed.
Fed minutes reveal split outlook:
Minutes from the Federal Reserve’s (Fed) September meeting showed policymakers divided over the pace of rate cuts, though most still anticipate further easing this year despite lingering inflation pressures.
AI enthusiasm fuels momentum:
Analysts noted that robust investment and dealmaking in artificial intelligence (AI) continue to underpin growth expectations, with tech sector earnings forecasts raised to 20.9% for the third quarter (Q3)
Gold extends record run:
sGold held firm above $4,000.00 an ounce as investors sought safety amid geopolitical and fiscal concerns.
Asia tracks Wall Street gains:
The Nikkei 225 rose 1.5% and Taiwan’s benchmark hit new highs, while Chinese blue chips rallied after reopening, as fresh rare earth export restrictions highlighted ongoing trade tensions.
Oil eases on Gaza ceasefire:
Brent crude oil slipped 0.6% to $65.89 a barrel after Israel and Hamas reached an initial ceasefire agreement, easing supply concerns and reducing geopolitical risk.
DAX 40 rally nears record high
The DAX 40's rally is ongoing with the July record high at 24,638 being eyed. Further up beckons a 161.8% Fibonacci extension at 24,900.
Minor support may be found around the mid-August high at 24,536 and the early October peak at 24,524, 24 July high at 24,515 and mid-July high at 24,495.
DAX 40 daily candlestick chart
AUD/USD stays below resistance
AUD/USD still tries to overcome last week's $0.6629 high but so far to no avail. If successful, the 13-month high at $0.6707 will likely be back in view.
While the current October highs cap, the 2 October low at $0.6577 may be revisited and the August-to-October support line at $0.6560 as well.
Slightly below it lies Wednesday's $0.6557 low, a fall through it would push the late September trough at $0.6521 to the fore.
AUD/USD daily candlestick chart
Copper trades in 2-month highs
The price of copper continues to rise with the early July peak at $5.2118 being in sight.
If overcome, the $5.4285-to-$5.4733 resistance zone, made up of several July daily lows, might be reached next.
Minor support may be spotted around the $5.1243 5 October low and along the uptrend line at $5.0827.
Copper daily candlestick chart
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