- AUD/JPY sinks heavily in early Asia following updates with regards to the US/Sino trade talks.
- The bears can aim for a continuation of the September downtrend and target 71 the figure.
AUD/JPY, which trades as a proxy to trade war headlines and risk-off themes in general, fell heavily in early Asia following the rather unsurprising updates with regards to the US/Sino trade talks getting underway this week in the US. The cross has fallen over 0.50% to a fresh low since the 3rd October business.
AUD/JPY is currently trading at 71.91 having been as low as 71.84 so far - The Chinese Yuan is down around 0.40% vs the USD.
The South China Morning Post says US and China make no progress on key trade issues
The moves in the currencies which are the most directly affected by the relationship between the US and China were hit hard when news that The South China Morning Post sources had said the following:
- US and China make no progress on key trade issues in two days of deputy-level talks, sources say.
- The Chinese delegation refuses to talk about forced technology transfers, a core US grievance in the negotiations, a person with knowledge of the meetings says.
- High-level talks are expected to last for only one day, with Liu He and his team now planning to leave Washington on Thursday.
This comes in stark contrast to some of the overnight reports that had stated the Chinese had remained open to a partial deal despite the US blacklist on Chinese tech firms. It also makes Trump's post-Wall Street close remark pretty foolish when he said there was a “really good chance” of a deal.
AUD/JPY levels
While below the descending 21-wek moving average and the 74 handle, the bears can aim for a continuation of the September downtrend and target 71 the figure and Sep lows while in pursuit of the July lows down at 69.95.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD turns negative near 1.0760
The sudden bout of strength in the Greenback sponsored the resurgence of the selling pressure in the risk complex, dragging EUR/USD to the area of daily lows near 1.0760.
GBP/USD comes under pressure and challenges 1.2500
GBP/USD now rapidly loses momentum and gives away initial gains, returning to the 1.2500 region on the back of the strong comeback of the US Dollar.
Gold retreats from highs on stronger Dollar, yields
XAU/USD trims part of its initial advance in response to the jump in the Dollar's buying interest and the re-emergence of the upside pressure in US yields.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Week ahead – US inflation numbers to shake Fed rate cut bets
Fed rate-cut speculators rest hopes on US inflation data. After dovish BoE, pound traders turn to UK job numbers. Will a strong labor market convince the RBA to hike? More Chinese data on tap amid signs of slow Q2 start.