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AUD/JPY is gaining altitude amid risk-on in equities

12/12/2018, 11:34:47 AMBasics of Trading
AUD/JPY is gaining altitude amid risk-on in equities

The AUD/JPY is solidly bid for the third day straight amid risk-on in equities.

The US President Trump was out on the wires earlier today, stating that he would intervene in the Huawei CFO case if it would help him reach a trade deal with China and boost national security. More importantly, he said that negotiations are happening and expressed readiness to meet President Xi Jinping again if required.

Simply put,  Trump said everything that would ease US-China trade tensions. As a result, equities and risk currencies like the AUD picked up a bid.

At press time, the S&P 500 futures are up 0.8 percent. Meanwhile, Asian heavyweights like Nikkei, Kospi, S&P ASX 200 are all trading in the green.

As a result, the AUD/JPY pair - which is widely considered a barometer of risk appetite -is extending the two-day winning streak. Currently, it is trading at 81.98, having clocked a session high of 82.06 a few minutes before press time.

Notably, the JPY cross has charted bullish higher-lows and higher-highs on the hourly chart. Further, the 50- and 100-hour MAs are reporting a bullish crossover. The pair, therefore, could test the 200-hour MA, currently lined up at 82.24.