AUD vs Yen (FX:AUDJPY)
From May 2019 to May 2020
The Australian dollar climbed against its major counterparts in the Asian session on Thursday, while the Japanese yen fell, as most Asian shares rose on rising hopes for a trade deal ahead of the highly anticipated meeting between President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Japan this week.
Trump voiced optimism over the possibility of a trade agreement with China but said he is still considering imposing "very substantial" tariffs on all Chinese imports if the two countries were unable to reach a deal during the meeting.
Separately, U.S. Treasury Secretary Steven Mnuchin told CNBC the U.S. and China had nearly completed a deal before talks broke down last month.
However, he didn't shed any light on the sticking points to achieving the final 10 percent and refused to speculate on whether a deal would be completed.
The U.S. and China have agreed to a tentative truce in their trade dispute, the South China Morning Post reported, citing sources.
In economic front, data from the Ministry of Economy, Trade and Industry showed that Japan retail sales rose a seasonally adjusted 0.3 percent on month in May - shy of expectations for a gain of 0.6 percent following the downwardly revised 0.1 percent drop in April.
On a yearly basis, retail sales were up 1.2 percent - in line with expectations and up from the downwardly revised 0.4 percent increase in the previous month.
The aussie climbed to more than 2-week highs of 0.6999 against the greenback and 1.6226 against the euro, from its early lows of 0.6983 and 1.6285, respectively. The next possible resistance for the aussie is seen around 0.725 against the greenback and 1.60 against the euro.
Reversing from its early lows of 1.0452 against the kiwi and 0.9164 against the loonie, the aussie edged higher to 1.0478 and 0.9187, respectively. If the aussie rises further, 1.06 and 0.94 are seen as its next resistance levels against the kiwi and the loonie, respectively.
The Japanese yen dropped to a 3-day low of 137.12 against the pound and a new 2-week low of 122.81 against the euro, reversing from its early highs of 136.62 and 122.42, respectively. The yen is seen finding support around 140.00 against the pound and 125.00 against the euro.
The yen retreated from its early highs of 107.65 against the greenback and 82.04 against the loonie, falling to a weekly low of 108.14 and more than a 5-week low of 82.36, respectively. On the downside, 111.00 and 84.00 are possibly seen as the next support levels for the yen against the greenback and the loonie, respectively.
After rising to 110.09 against the franc at 8:45 pm ET, the yen reversed direction and declined to 110.31. Continuation of the yen's downtrend may see it challenging support around the 112.00 region.
Looking ahead, Eurozone economic sentiment index for June will be out in the European session.
At 8:00 am ET, German preliminary consumer inflation for June is set for release.
The U.S. weekly jobless claims for the week ended June 22, pending home sales for May and GDP data for the first quarter will be featured in the New York session.