- AUD/JPY hit 2.5-month highs above 74.80 on trade optimism.
- The pair has witnessed a slight pullback in the last few minutes despite the uptick in the Asian stocks.
AUD/JPY printed a 2.5-month high soon before press time, possibly due to easing of US-China trade tensions and the resulting rally in the stock markets.
The currency pair rose to 74.83 – the highest level since Aug. 1 – having gained 0.36% on Monday.
US President Donald Trump on Monday said efforts to end a trade tiff with China are progressing well and negotiators from the two nations are working to nail down a Phase 1 trade deal, which could be signed by President Trump and President Xi at November’s APEC summit.
Trump’s comments boded well for commodity dollars like the AUD, NZD, and CAD.
Also, the optimism on the trade front strengthened the bid tone around the stocks, keeping the anti-risk Yen under pressure. For instance, the S&P 500 closed above 3,000 on Monday.
As of writing, the AUD/JPY pair is trading at 74.64, representing little change on the day.
The pair has pulled back from session highs despite the risk-on in the Asian equities and the upbeat Aussie data.
At press time, major Asian indices like the S&P/ASX 200 and the Kospi are flashing green and the futures on the S&P 500 are reporting a 0.16% gain.
Meanwhile, Australia’s (AU) ANZ-Roy Morgan Weekly Consumer Confidence rose to 111.60 from 110.90 earlier readouts.
The global data docket is thin during the day ahead. The pair, therefore, remains at the mercy of the broader market sentiment.