AUD/JPY in green as Trump delays tariff hike against China
- AUD/JPY is mildly bid in Asia as Trump announced on Twitter that the US and China have made substantial progress in ongoing trade negotiations.
- President Trump announced on Sunday that he is delaying tariff hike against China that was scheduled to go into effect on March 1.
- Technically speaking, a break above 79.84 (Feb. 5 high) to confirm a bull breakout.
The AUD/JPY pair is currently trading at 0.54 percent higher on the day at 79.27, courtesy of US-China trade optimism.
President Trump announced on Twitter earlier today that the US has made substantial progress in ongoing trade negotiations with China on key structural issues, including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues and so, he will be delaying the US tariff hike beyond the self-imposed deadline of March 1.
Trump's clear hint of a breakthrough trade deal seems to have put a bid under the risk assets. At press time, the S&P 500 futures are up 0.30 percent on the day and MSCI's broadest index of Asia-Pacific shares outside Japan has jumped 0.14 percent to the highest since October.
In FX markets, trade-sensitive currencies like AUD and NZD are flashing green. The AUD/JPY cross, a barometer of risk sentiment, has found acceptance above 79.00 but is still trapped in a range of 77.40-79.85. A break above the upper edge of the range would imply a continuation of the rally from the Jan. 3 low of 70.58 and also invalidate Thursday's bearish outside-day candle.
AUD/JPY Technical Levels