DAX 40 trades in one-month high as AUD/USD, copper remain bid
DAX 40 trades in one-month high as AUD/USD, copper remain bid amid risk on sentiment despite US government shutdown.
Macro update
Wall Street ends higher: US equities closed stronger on Wednesday, with gains led by healthcare and technology shares, even as weak jobs data and the start of the government shutdown weighed on sentiment.
Healthcare boost: Pharma stocks rallied globally, with AstraZeneca and peers advancing after Pfizer reached a deal with President Trump to lower Medicaid drug prices in exchange for tariff relief.
Soft jobs data: Automatic Data Processing (ADP) reported a 32,000 decline in private payrolls for September, missing expectations for a 50,000 increase. August figures were also revised down to show a slight contraction.
Fed expectations: The disappointing labour numbers bolstered market bets on quarter-point rate cuts at the Federal Reserve’s (Fed) two remaining meetings this year, putting pressure on Treasury yields and the US dollar.
Commodities and safe havens: Gold hovered near its record at $3,900.00 as investors sought safety, while oil prices inched higher on the prospect of tighter sanctions against Russia.
Global markets: Chip sector strength supported gains in Tokyo, Seoul and Taipei, while European futures pointed higher ahead of comments from European Central Bank (ECB) policymakers.
DAX 40 rallies to one-month high
The DAX 40's rally above its 10 September high at 23,883 is bullish with the 28 August high at 24,206 representing the next upside target. Further up beckons the 7 August peak at 24,392.
Minor support may be seen along the breached August-to-October resistance line at 23,985.
DAX 40 daily candlestick chart
AUD/USD bangs into resistance
AUD/USD still tries to overcome last week's $0.6628 high, a rise above which would allow for the 13-month high at $0.6707 to be back in sight.
Minor support can be found around the 22 September low at $0.6575. Only currently unexpected failure there on a daily chart closing basis may lead to the $0.6568-to-$6564 support zone being revisited. Further down meanders the 55-day simple moving average (SMA) at $0.6541 and sits the $0.6521 September trough.
AUD/USD daily candlestick chart
Copper trades in 2-month highs
On Wednesday, the price of copper hit a new 2-month high at $4.9425, marginally above the 25 September high at $4.9385 and close to the $4.9635 late April peak which remains in sight.
Support remains to be seen along the 200-day simple moving average (SMA) at $4.8072.
Copper daily candlestick chart
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