AUD/JPY edging towards 81.00 as trade fears continue unabated
- The Aussie is on the wrong side of risk appetite, heading lower against the JPY.
- Trade wars are the primary concern for traders this week, with tariffs between the US and China expected on Friday.
The AUD/JPY is trading down into 81.40 in the early Thursday Asia session after middling through Wednesday's markets.
The Aussie is shedding some ground against the safe haven Yen as market concerns about the looming US-China trade spat are due to come to a head this week, with a raft of tariffs from the US on $34 billion worth of Chinese goods is expected to take effect beginning on July 6th, with a quick response anticipated from China with their own set of tariffs. Trade concerns have been the overarching theme of broader markets this week, and the Aussie is down 0.86% so far for the week.
Thursday is a light showing for the AUD/JPY, though the Australian AiG Performance of Construction Index for June is due at 22:30 GMT which last printed at 54, while the Japanese year-on-year Household Spending for May will be dropping later at 23:30 GMT. Household Spending is expected to contract to -1.5% over the previous reading of -1.3%.
AUD/JPY levels to watch
The Aussie has been struggling to develop bullish momentum against the Yen for several weeks, and this week's high will be capping off buyers at 82.10, with further resistance from the one month high of 84.15, while support is condensed near the technical bottom at 80.60 and the week's low near 81.00.
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
