DAX 40 weighs on support while AUD/USD, copper prices rise
DAX 40 bounces off support while AUD/USD, copper prices rise ahead of US PCE inflation print.
Macro news
Focus on US personal consumption expenditures (PCE) data: Investors are awaiting July PCE inflation figures, the Federal Reserve’s (Fed) preferred inflation gauge, with markets now pricing in an 85% probability of a September rate cut.
US dollar softens on Fed outlook: The dollar is on track for a 2% monthly decline as expectations for rate cuts build and concerns grow over Fed independence amid Trump’s push to remove Governor Lisa Cook.
DAX 40 weighs on support
The DAX 40 has been gradually coming off its 24,536 August high and hovers above this week's lows at 24,206-to-24,198. Together with the 22 and 28 of July as well as 12 August lows at 23,942-to-23,922 it offers support.
As long as it holds, a recovery towards the 24,300 region may ensue but failure at 23,922 on a daily chart closing basis could lead to the early August low at 23,381 being revisited.
DAX 40 daily candlestick chart
AUD/USD advances further still
AUD/USD's recovery from its $0.6415 22 August low has so far taken it to a two-week high at $0.6542.
The mid-June high at $0.6552 represents the next upside target ahead of the late June and mid-August highs at $0.6564-to-$0.6568 which may at least short-term cap. If not, the way would be open for the early July peak at $0.6590 to be reached.
Potential slips may find support around the $0.6524 18 August high or around the 55-day simple moving average (SMA) at $0.6514.
AUD/USD daily candlestick chart
Copper price hits one-month high
The price of copper has been rising over the past three days and hit a one-month high at $4.5780 on Friday morning.
The next potential upside target is the late May low at $4.6463 ahead of the 200-day SMA at $4.7600.
Minor support below the mid-August high at $4.5483 is seen around the 4 August high at $4.4798.
Copper daily candlestrick chart
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