- AUD/JPY climbs to fresh two-week highs.
- Risk reset looks likely on reports of US-China trade truce.
- AUD/JPY's chart shows scope for a rise to 76.00.
The already bid AUD/JPY is extending gains on reports of US-China trade truce.
The currency pair is currently trading at 75.60, the highest level since June 11, representing 0.37% gains on the day.
Notably, the pair has added more than 10 pips in the last few minutes, possibly due to report by South China Morning Post that the US and China have tentatively agreed to another truce in their trade war, paving way for a fresh round of negotiations.
With the temporary truce, President Trump has reportedly delayed the next round of tariffs on an additional US$300 billion of Chinese imports.
The news seems to be boding well for risky assets. For instance, the futures on the S&P 500 are up 0.32% at press time and the Shanghai Composite is adding 1%.
As a result, the anti-risk Japanese Yen may continue to lose ground in Europe.
The AUD/JPY pair has violated the falling trendline from April 17 highs and the 5- and 10-day moving averages (MAs) are reporting a bullish crossover. As a result, the JPY cross could rise further toward 76.00 during the day ahead.
- R3 76.43
- R2 75.9
- R1 75.6
- PP 75.06
- S1 74.76
- S2 74.23
- S3 73.93
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