AUD/JPY hits 18-day low as S&P 500 futures drop 0.3 percent

• AUD/JPY fell to 82.04 in Asia - the lowest level since May 31.
• The pair risks falling below 82.00 on signs of risk aversion.
• S&P 500 futures are reporting a 0.3 percent drop.

The AUD/JPY hit an 18-day low of 82.04 in Asia, possibly due to escalating trade tensions between the US and China and the resulting drop in the S&P 500 futures.

On Friday, Trump administration said it would impose tariffs on $50 billion of Chinese imports. In response, China announced additional 25 percent tariffs on 659 US goods worth $50 billion.

The tit-for-tat tariffs have brought world's two biggest economies closer to a full-blown trade war and hence the S&P 500 futures are likely flashing red. As of writing, the futures are down 0.33 percent.

Meanwhile, the anti-risk JPY is on the rise across the board. The AUD/JPY pair is trading at 82.15 and could drop below 82.00 if the major stock markets across Asia and Europe, track S&P 500 futures lower.

AUD/JPY Technical Levels

Support: 82.00 (psychological support),  81.49 (Mar 5 low), 81.03 (May 30 low).

Resistance: 82.38 (session high), 82.87 (falling 5-day moving average), 83.17 (100-day moving average).