AUD/JPY falls as more US tariffs sends risk aversion back to the forefront

Risk aversion sends traders back into safe havens as US considers yet more tariffs.
Japanese foreign investment numbers deliver little action.

Joshua Gibson FXStreet

The Aussie is tripping lower once again in Asia trading against the Yen, slipping into 82.85 as of writing as risk-off spikes the early Thursday session.

US President Trump confirmed he is instructing the US Department of Commerce to make a formal investigation of whether imported vehicles falls under Section 232, allowing the United States to impose a 25% tariff on imported vehicles. Markets have recoiled from the news, sending traders into the safe haven Yen on reaction.

Japan saw Foreign Investment figures early in the day, and the figures came in mixed, with foreign investment in Japanese stocks contracting from a revised ¥126.5 billion to ¥99.1 billion to May 18th, while foreign investment in Japanese bonds lifted to ¥948.9 billion from a revised ¥835.3 billion.

AUD/JPY levels to watch

The pair has slipped further down after making a new high near 84.50, and the Aussie is trudging lower amid floundering risk sentiment and is approaching support from the 50-day EMA at 82.80. Bullish traders may be looking for a jumping-in point as the pair approaches the 50.0 Fibo retracement level near the same value, though with confidence continuing to falter in the AUD a further drop into the last swing low at 81.10 could be on the cards.

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.

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.