AUD/JPY turns lower from April 30 high, data-heavy session ahead

• AUD/JPY faces rejection at familiar resistance of 70.17. 
• JPY draws bids as S&P 500 futures decline on trade jitters. 
• China's PPI is forecasted to have declined at a faster pace in April.

The selling interest in AUD/JPY is gathering steam with the pair currently trading in the red around 65.55, having faced rejection at the April 30 high of 70.17 early Tuesday. 

The 0.41% decline in the JPY cross seen at press time could be associated with the US President Trump's hard stance against China and the resulting risk aversion in the US stock futures. 

Having accused China of intentionally spreading the coronavirus earlier this month, President Trump is now taking a stand against the renegotiation of the phase 1 terms of the US-China trade deal. As a result, the futures tied to the S&P 500 are reporting a 0.30% decline, and the anti-risk yen is gaining ground against the growth-linked Aussie dollar. 

The pair could suffer deeper losses if the data, due at 01:30 GMT, shows a bigger-than-expected decline in China's April factory-gate prices or the Producer Price Index. The data is expected to come in at -2.6% versus -1.5% in March. Meanwhile, the Consumer Price Index is forecasted to have risen by 3.7% versus 4.3% in March. 

Also, National Australia Bank's Business Conditions and Business Confidence indices for April will be released at 01:30 GMT., following which, the focus would shift to Australia's budget release. 

Technical levels