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