By: Sean Lee

This is one story which might have an increasing impact on the financial markets. Tensions in the East-China Sea escalated overnight with Chinese warships reportedly pointing missile radars at Japanese military targets, and Japanese officials describing the situation as dangerous.

What to trade? Be short risk trades but preferably not buying Yen is logical in my opinion. So selling AUD/USD or AUD/CHF would be the logical trade if these geo-political rumblings get louder.