AUD/JPY down more than 1%
AUD/JPY is at session lows, down 84 pips to 76.13 as trade worries fears intensify after China revealed plans to hit US goods with tariffs on June 1. This isn’t entirely unexpected but it highlights the risk that the US and China will be in a protracted trade war.
Technically, there isn’t a lot to prevent this pair from sinking all the way back down to the January low. There is some scope for Australian firms to take Chinese market share away from the US but softer global growth will be a huge headwind if this trade battle continues.