AUD/JPY: Pops decent pips through 73 the figure on Trump's latest trade-talk comments
- AUD has been advancing overnight and the Yen has been thrown onto the back foot.
- AUD/JPY has popped onto the 73 handle as Trump talks-up trade talks.
AUD/JPY has popped on the confirmation from Trump, speaking at a campaign rally in Minneapolis, that trade talks are going well and that a dal should be achieved. AUD/JPY spiked from 72.97 to a high of 73.20 but has since slid a touch and back to 73.08.
Overnight, risk appetite returned on the notion that the trade talks were indeed going to go ahead as fully planned, contrary to the belief that high-level negotiations would not take place following the US State Department's blacklisting of 28 Chinese companies, government offices and security bureaus over their alleged role in facilitating human rights abuses in China's Xinjiang region.
Instead, Bloomberg and NY Times stories spun a more positive tone suggesting that a partial deal would be in the making this week while accompanied by an easing of restrictions on Huawei and possible delays/and or cancellation of additional tariffs.
Trump will meet Chinese Vice Premier Liu today
Trump said he will meet Chinese Vice Premier Liu today following Liu's meeting with top US trade negotiators, Steven Mnuchin and Robert Lighthizer, overnight which was the first time the two sides have met since July.
AUD has been climbing all day and the Yen has been thrown onto the back foot following the switch-up in sentiment. In recent trade, Trump's comment at the campaign rally in Minneapolis, where he said, "We're going to see if we can make a deal with China...China has been nice," has given the risk-on currencies an extra boost and sent related crosses over the gain-lines, with USD/JPY on the 108 handle and AUD/JPY through the 73 level.
AUD/JPY levels
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
