AUD/JPY touches a session low of 83.00 on the day
The aussie is the weakest currency on the day with the yen being the strongest. That's making the AUD/JPY the biggest mover so far, with the pair now looking for a clear break below the 100-day MA (red line) @ 83.32.
A daily close below will provide a good case for sellers to continue the downside break as they regain control of the bearish bias in the pair. The aussie wasn't well supported by domestic and Chinese data earlier, and cross-selling against the kiwi didn't help either. Adding to the fact that equities remain weak with bonds starting to pick up some steam (beginning of a risk off move), this is a classic pair for risk traders to capitalise on.
And right now, it's not looking good for buyers. With the US-China trade rhetoric set to come back into the picture when the US slaps tariffs on Chinese goods, expect further pain for equities and added support for Treasuries - which in turn will bolster the yen.
The next key level towards a move to the downside will be the 23.6 retracement level @ 82.52 but in between there is minor support seen @ 82.60 and 82.80 from the lows on Friday and Monday respectively.
