HomeLive CommentsCopper and Aussie rally on China's stimulus optimism

Copper and Aussie rally on China’s stimulus optimism

Copper rises notably today, on optimism of fiscal stimulus in China, or at least some policy adjustment. Australian Dollar is also taken higher too, even though it lags in momentum. The moves come with strong rally in Hong Kong stocks and Chinese Yuan in the background.

As for Copper, immediate focus in now on 3.8787 resistance. Firm break there will confirm that fall from 3.9420 has completed. That would also indicate the completion of the three-wave corrective pattern from 3.9501 at 3.7725. Further rise should then be seen to retest 3.9501 first. Firm break there will resume whole rise from 3.5387 to 61.8% projection of 5.5387 to 3.9501 from 3.7725 at 4.0267 next.

As for AUD/USD, a temporary low was formed at 0.6714 with current recovery. If the rally in Copper continues to gather strength, it could aid AUD/USD in pushing through 0.6845 resistance, or even surpassing 0.6898 to resume the entire rebound from 0.6457.

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