At the beginning of the week, the AUD/JPY (Australian Dollar to Japanese Yen) dropped to around 86 yen in the Sydney market. This happened because U.S. officials talked about delaying tariffs and possibly needing new ones, which made people avoid risk and buy yen.
Later, the price went up and reached 90.42 yen in the New York market but then fell back to around 88 yen before closing.
During Tokyo trading, Australia’s Finance Minister Chalmers said tariffs are hurting the economy and the falling Australian dollar is mostly due to worries about China’s economy. China quickly answered U.S. tariffs with new tariffs of its own. However, President Trump said he won’t deal with China unless the trade deficit is fixed, showing a strong position.
This situation could hurt China’s economy more, and that may cause the Australian dollar to fall again. After the recent price recovery, the price may start falling once more.
AUD/JPY expected price range: 89.60 – 87.50 yen
Note: This information is not a guarantee of profit. Make your own decisions when trading.