AUSSIE-YEN: AUD/JPY has shed 24 pips and last sits...>

AUSSIE-YEN: AUD/JPY has shed 24 pips and last sits at Y76.73, as U.S.-China

trade spat weighs on the broader risk appetite at the beginning of the week,

following the weekend's blame game.

- BBG sources said that U.S. officials told the Chinese trade envoys that

Beijing has a month to sign off on a bilateral trade deal, or the U.S. will

extend tariffs to all Chinese goods. This came after U.S. President Trump

publicly praised the talks as "constructive," which allowed AUD/USD to climb

late doors on Friday and finish 26 pips better off. 

- The weekend saw hawkish rhetoric coming from both sides. Trump tweeted that

China ought to "act now" if it wants to avoid " far worse" conditions of the

deal, while Chinese VP Liu noted that an adoption of a deal requires removing

all U.S. tariffs, balancing the text of the document, and setting targets for

agricultural products in line with demand. In early Asian hours today, Trump

tweeted that the U.S. is "right where it wants to be" with China.

- Bears look for a break below the May 9 multi-month low of Y76.34 to extend the

recent downtrend. Meanwhile, bulls look to the trendline resistance at Y77.09.