EUR/AUD clambers up to the 1.58 handle in the overnight session

• Risk-off sends commodity-based AUD plunging, EUR weathers the storm better, climbs against the Aussie.
• Japanese scandal to weigh on Asia risk appetite, little data puts sentiment in the driver's seat.

The EUR/AUD has claimed the 1.5800 handle heading into the Tokyo market session after climbing steadily through Thursday, and the pair is now set to resume climbing if market sentiment continues to sag. Ongoing trade war fears between the US and China over Trump's tariff strategy continue to depress market sentiment, and the late-day Mueller subpoena of Russia-related materials from the Trump Organization does little to settle frayed nerves about American political turmoil.

The Japanese land sale scandal has deepened today with the revelation that the Japanese Prime Minister, Shinzo Abe, knew about the altered documents at least six days before the government admitted the issue to the public has raised the alarm bells from opposition party members in the Japanese parliament, and the issue is set to rattle cages in Asia trading as Japan's government gridlocks.

EUR/AUD Technicals

The pair has swung bullish on Daily candles, and the 8-day EMA will provide support from 1.5760 and further support comes from the 34 EMA at 1.5684. The EUR/AUD is volatile on the H4 charts, and resistance is priced in from last week's open near 1.5875 and last week's high of 1.5978.