Asia Pacific Market Open Talking Points
- US-China trade war threats renewed as anti-risk Japanese Yen[1] gains
- Markets could be looking at a repeat of Monday, Nikkei 225[2] at risk
- AUD/USD[3] attempted downside break eyeing RBA, trade war news
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US-China Trade War Fears Linger On
After the past 24 hours saw a sudden revival in US-China trade war fears[5], sending stock markets across the world lower as the anti-risk Japanese Yen rose, Tuesday is looking to be no different. Not long after Monday’s Wall Street close, US Trade Representative Robert Lighthizer announced that the nation is due to increase Chinese tariffs come Friday with the targeted nation accused of reneging on trade deal provisions.
Looking at the immediate chart below, the pro-risk Australian Dollar[6] declined against its US counterpart alongside S&P 500[7] futures as the trade news crossed the wires. USD/JPY[8] also fell as the Yen added on to earlier gains. It is important to note however that the US will continue with negotiations with China, with a delegation team from the latter anticipated to arrive on Thursday.
AUD/USD, USD/JPY and S&P 500 Futures Fall on US-China Trade War Update
Chart Created in TradingView
Tuesday’s Asia Pacific Trading Session
With that in mind, foreign exchange markets seem to be poised for more volatility as we look towards Asia Pacific trade. Japanese
