Trump said on Twitter today that the US will delay a tariff increase of USD$250 billion on Chinese imports that was to take effect 1 October. Long AUD/JPY?
US President Donald Trump tweeted this morning that he will be delaying the tariff hike to 15 October as a “gesture of good will” to China. Trump further said the postponement was due to the fact that the People’s Republic of China will be celebrating its 70th anniversary.
This was a drastic change from last month when Trump said that he wanted to double the tariffs and regretted not slapping enough on China. Risk currencies continue to strengthen as investors are seeing optimism from the US-China trade talks.
Risk currencies have benefited from an improvement of risk sentiment, namely from a no-deal Brexit being ruled out, the easing of US-China trade tensions and the ECB not expected to be full-out dovish tonight.
AUD/JPY has been moving higher after bouncing off a historical low at the 69.80 price level. This pair could continue its uptrend momentum towards 75.20.
Fullerton Markets Research Team
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