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  • AUD/JPY could be considered a fade on rallies as trade wars dominate headlines.
  • Trump’s tariff delays not enough to squash the market’s pessimism.  

There are concerns being floated again with respect to the recent concession which Trump announced in delaying tariffs on Chinese imports until December.  

The Chief in Editor at The Global Times tweeted:

“As far as I know, the Chinese side requests that both sides respect the consensus reached at Osaka summit, which is removing all additional tariffs, not delaying some. I doubt the Chinese side will resume large-scale purchase of US farm products under current circumstances.”

Headlines such as this may not have an immediate impact and may tale their time to filter through but they would be expected to add pressure to already fragile risk appetites in global financial and commodity markets.  

FX implications

Such headlines would usually build the case for shorting commodity-FX and buying the Yen making for the case for short AUD/JPY even more compelling, -1.45% at the time of writing and rallies should be considered a fade.