CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.

Yen Jumps as Apple’s Rare Revenue Warning Triggers Risk-Aversion Mood

2019-1-3 14:51:15Basics of Trading
Yen Jumps as Apple’s Rare Revenue Warning Triggers Risk-Aversion Mood

The Japanese yen jumped on Thursday in Asia after Apple Inc. issued a rare revenue warning that triggered a risk-aversion mood in markets.

The USD/JPY pair declined 1.5% to 107.21 by 11:23 GMT (04:23 GMT).

The gain in yen came after Apple lowered its forecast to $84 million in revenue for its fiscal first quarter ended Dec. 29, underperforming analysts’ expectations of $91.5 billion.

The company initially forecasted revenue of between $89 billion and $93 billion.

Apple shares (NASDAQ:AAPL) tumbled in after-hours trade, as traders fled to the safety of the highly liquid yen. The yen also received some support this week amid weaker-than-expected PMI data out of China.

Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies slipped 0.2% to 96.155.

The Australian dollar, often considered a gauge of global risk appetite, fell 0.6% against the U.S. dollar to 0.6946.

The U.S.-Sino trade talks later this month could potentially improve the outlook for the Aussie dollar, some analysts said.

"These talks need to yield agreement to a reasonably comprehensive deal as a minimum prerequisite for a recovery in global risk asset sentiment and a stronger Australian dollar," said Ray Attrill, head of currency strategy at NAB in a note.

"If so, we’d expect Aussie dollar to be trading back reasonably comfortably above 0.70 before Q1 is out."

Elsewhere, the USD/CNY pair rose 0.2% to 6.8861 as the People's Bank of China (PBoC) has set the yuan reference rate for today at 6.8631, compared to yesterday's rate of 6.8482.