AUD/JPY Trade Headline Hype Sees Risk Spike – SPX
Our preference: the upside prevails as long as 72.47 is support.
Alternative scenario: below 72.47, expect 72.25 and 72.12.
China has “lowered expectations” for progress from this week’s trade talks. That shouldn’t come as too much of a surprise, given the US added 28 Chinese companies to their blacklist yesterday.
There’s also reports that China would cut the scheduled 2-day trade talks early by one day. On the upside, reports suggest that the Trump administration may allow US companies to supply non-sensitive goods to Huawei,
and that the US may delay next week’s tariff hike. And today,
the US is reconsidering currency pact which would ensure China don’t engage in competitive devaluation of the Yuan. Personally, I do not see China agreeing to this. Yet markets took it as a positive step and saw risk assets such as E-mini SP500 futures and AUD/JPY spike higher.