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  • AUD/JPY remains depressed for the third day in a row.
  • Australia’s TD Securities Inflation drops, Building Permits and ANZ Job Advertisements flash mixed signals.
  • US-China arguments over the virus spread reach to challenge the trade deal.
  • Japanese banks are off for the Greenery Day holiday.

Despite recently bouncing off 68.00, to currently near 68.25, AUD/JPY sheds 0.60% on a day during the Asian session on Monday.

Australia’s April Month TD Securities Inflation slipped below 1.5% YoY and 0.2% MoM to respectively 1.2% and -0.1%. However, the March month’s Building Permits defy -15% forecast with -4.0% mark whereas ANZ Job Advertisements fall further below -10.3% prior to -53.1%.

Following the release, AUD/JPY manages to recovery a bit but the broad risk-off moves keep exerting downside pressure on the pair that is known as a risk barometer.

The pair have recently been pressured as US President Donald Trump harshly criticizes China’s mishandling of the coronavirus (COVID-19) outbreak. In his latest tweet, the Republican leader has also threatened to break the much-championed US-China trade deal, which in turn weighs heavily on the market’s risk-tone sentiment amid the already fragile conditions due to the virus-led economic standoff.

Other than President Trump’s attacks on China, US Secretary of State Mike Pompeo Also cited intelligence report to back his claim suggesting the dragon nation’s intentional efforts behind the widespread of the deadly virus.

However, China’s Global Times defies these claims while terming them as a bluff to fool US voters.

It’s worth mentioning that Gilead’s Remdesivir is about to hit the markets and becomes risk-positive news but fails to pullback the S&P 500 Futures off over 1.0% loss.

Moving on, off in China and Japan might restrict the market’s further risk aversion but any signs of optimism are less likely to be entertained amid a light economic calendar.

Technical analysis

Bears need a sustained break below 50-day SMA level of 67.86 to aim for the late-April low surrounding 67.30. However, buyers targeting 70.00 are less likely to enter unless the pair cross April 14 top close to 69.30.