AUSSIE-YEN: AUD/JPY has managed to claw back the.....>

AUSSIE-YEN: AUD/JPY has managed to claw back the bulk of its initial losses and

last trades at Y71.64, 9 pips lower on the day.

- The rate slid into the London midnight as the already present risk-off mood

became more pronounced. No new headlines/data releases seemed to be driving the

move, but worries remained re: strained Sino-U.S. trade relations. AUD/JPY

touched Y71.39 as a result.

- A stronger than expected central yuan fixing from the PBoC has brought relief

to risk assets, allowing AUD/JPY to almost erase its earlier losses.

- A break below the lower 1.0% 10-DMA envelope at Y71.09 would give bears some

momentum, bringing into view the round figure below. Bulls look for a break

above Y71.72, which has limited gains so far and represents the 23.6% fibo

retracement of the Aug fall. Above here opens the Y72.00 mark.

- This comes after broader risk aversion, linked to U.S.-China trade matters,

prompted AUD/JPY to give away 44 pips on Friday.