DAX 40, AUD/USD, copper price remain bid
Technical analysis of the DAX 40, AUD/USD and copper price as they continue their swift advances.
Macro update
Asian equities rally on geopolitics and earnings optimism: Regional markets advanced as hopes of a US-Iran peace deal lifted sentiment, with MSCI Asia-Pacific ex-Japan up 0.9% and the Nikkei 225 rising 2.2% to a record high, while US futures also edged higher.
Earnings momentum supports global equity backdrop: Stronger-than-expected US bank results from Bank of America and Morgan Stanley supported Wall Street, while Asian investors looked ahead to TSMC earnings, with AI-driven demand seen underpinning regional profit growth.
China growth beats expectations despite conflict risks: Chinese equities gained after first-quarter GDP growth came in at 5.0%, above forecasts, indicating resilience despite disruption from the Middle East conflict.
Australian labour market remains resilient: Employment rose broadly in line with expectations and the unemployment rate held at 4.3%, reinforcing a firm labour market and supporting a cautious stance from the RBA on rate cuts.
Oil prices steady as supply disruption persists: Brent hovered around $95 a barrel and WTI near $92, with tentative optimism over renewed US-Iran talks offset by scepticism that any deal will quickly restore flows through the Strait of Hormuz.
Gold rises as dollar weakens and yields ease: Gold rebounded towards $4,838 an ounce as the dollar and US Treasury yields softened, while the euro extended gains towards $1.18 amid renewed concerns over Fed independence following Trump’s comments on Jerome Powell.
DAX 40 remains bid
The DAX 40 is trying to overcome its 200-day simple moving average (SMA) and last week's high at 24,104-to-24,164, a rise above which would probably engage the late January-to-early February lows at 24,266-to-24,273. Further up lies the early March high at 24,366.
Short-term outlook: bullish while above the 13 April 23,482 low
Medium-term outlook: bullish while above the 2 April low at 22,678
DAX40 daily candlestick chart
AUD/USD trades at levels last seen in June 2022
AUD/USD's sharp advance from its late March $0.6834 low has so far taken it to $0.7197, a 3 3/4 year high. If bettered, the 7 February 2022 peak at $0.7249 may be reached next.
Support may be found in the $0.7150-to-$0.7129 area.
Short-term outlook: bullish while above the 13 April $0.6988 low
Medium-term outlook: bullish while above the 30 March low at $0.6834
AUD/USD daily candlestick chart
Copper price trades in near 10-week high
The price of copper continues to rice from its $5.2463 four-month March low and has so far hit a 10-week high at $6.1475, having strongly risen for three consecutive days.
Above $6.1475 and the $6.1543 mid-January high beckons the January peak at $6.5828.
Immediate support sits in the $6.1153-to-$6.0873 region.
Short-term outlook: bullish while holding above the 12 April $5.7648 low
Medium-term outlook: bullish while trading above the 9 April $5.6918 low
Copper daily candlestick chart
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