- Aussie climbs, Yen falls away as trade tensions relax.
- First half of the week sees limited data for the AUD.
The AUD/JPY is pushing into a new four-week high near the 83.50 level as Asia markets get propped up following the weekend news that China and the US have agreed to wind down their current trade spat that has been crimping markets for months.
The US has put their planned $150 billion tariff structure on hold and China has dropped their investigation into illegal US sorghum dumping as the two parties collectively agreed to ease off pressure this weekend. China has agreed to a meaningful increase in imports of US energy and agriculture products, though specifics on the US’ target of a $200 billion reduction in their trade balance with China were missing.
The week starts off quiet for the Aussie, with little on the macro calendar until early Wednesday with quarterly figures for Construction Work Done (exp. 1%, prev. -19.4%) at 01:30 GMT.
At 23:50 GMT on Sunday the Yen will be seeing Merchandise Trade Balance totals for April, and the headline figure is expected at ¥405.6 billion, a notable decline from the previous ¥797.3 billion.
AUD/JPY levels to watch
The AUD has rallied well against the Yen from May’s low of 81.10, and the pair has climbed almost three percent, but the AUD/JPY will first have to make a strong close over and above the descending trendline before it can make a firm challenge of April’s swing highs near the 84.00 major handle.
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