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AUSSIE-YEN: AUD/JPY took a hit from risk-off flows...>

AUSSIE-YEN: AUD/JPY took a hit from risk-off flows triggered by headlines noting
that the U.S. is to introduce 5% tariffs on all imports from Mexico. This has
been communicated by U.S. President Trump via his Twitter account, before the
White House released the full text of the relevant statement, noting that the
tariffs may increase to 25% by Oct 1 if Mexico fails to "take action to
dramatically reduce or eliminate the number of illegal aliens crossing its
territory into the U.S."
- There was a number of Japanese data releases alongside the aforementioned
headlines, but these were overshadowed by the spillover from U.S.-Mexico trade
matters. Japanese industrial output (p) topped exp., unemployment was in line
with forecasts, while Tokyo CPI & retail sales figures were worse than exp.
- AUD/JPY has shed 24 pips and last trades at Y75.53. Bears look to the May 17
multi-month low of Y75.33, while a fall below would open the Jan 4 low of
Y75.24. Conversely, bulls need a move through Y75.83/84/87, which represent the
May 23, 17 & 29 peaks, before challenging the Y76.00 figure.

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