AUD/JPY hits 18-day low as S&P 500 futures drop 0.3 percent
|- AUD/JPY fell to 82.04 in Asia - the lowest level since May 31.
- The pair risks falling below 82.00 on signs of risk aversion.
- S&P 500 futures are reporting a 0.3 percent drop.
The AUD/JPY hit an 18-day low of 82.04 in Asia, possibly due to escalating trade tensions between the US and China and the resulting drop in the S&P 500 futures.
On Friday, Trump administration said it would impose tariffs on $50 billion of Chinese imports. In response, China announced additional 25 percent tariffs on 659 US goods worth $50 billion.
The tit-for-tat tariffs have brought world's two biggest economies closer to a full-blown trade war and hence the S&P 500 futures are likely flashing red. As of writing, the futures are down 0.33 percent.
Meanwhile, the anti-risk JPY is on the rise across the board. The AUD/JPY pair is trading at 82.15 and could drop below 82.00 if the major stock markets across Asia and Europe, track S&P 500 futures lower.
AUD/JPY Technical Levels
Support: 82.00 (psychological support), 81.49 (Mar 5 low), 81.03 (May 30 low).
Resistance: 82.38 (session high), 82.87 (falling 5-day moving average), 83.17 (100-day moving average).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.