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AUSSIE-YEN: AUD/JPY last deals at Y75.01, a dozen....>

ASIAN MARKETS, AUSSIE-YEN
AUSSIE-YEN: AUD/JPY last deals at Y75.01, a dozen pips worse off, amidst broader
risk-off flows triggered by global trade worries. Worth noting Australian AiG
m'fing PMI decelerated to 52.7 from 54.8, but no immediate reaction in AUD/JPY
has been noted.
- Over the weekend, U.S. President Trump kept up his combative trade rhetoric,
claiming that "foreign countries have been robbing and deceiving [the U.S.] for
years." Elsewhere, China published a White Paper re: the U.S. trade
negotiations, which blamed Washington for the breakdown in talks.
- This comes after AUD/JPY slumped 64 pips, bottoming at Y75.09 (already
breached today), the worst level since Jan 4. The move was driven by JPY
outperformance, as investors were looking for safety amidst escalating trade
tensions after U.S. Pres Trump unexp. announced fresh tariffs on Mexico. A
recovery attempt in Europe held shallow, and the rate slid into the close.
- Below the lower 1.0% 10-DMA envelope at Y74.90 exposes the 61.8% fibo
retracement of the YtD range at Y74.49. Bulls need a break above Friday's/Jan 4
lows of Y75.09/24 before challenging Y75.79, where the rate peaked on Friday.

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