Listen to the latest market mood for the AUDJPY pair.

Weak AUD, Strong JPY

President Trump tests positive for COVID-19 and will now be in quarantine. With the House and the Senate seemingly unable to agree on fresh stimulus plans a deal between Nancy Pelosi and Donald Trump seemed to be the only way through.

The immediate reaction to the news is a weakness in the USD and strength in the JPY. With the chances of a US stimulus deal now less likely, it is reasonable to expect a slide in risk assets as equity futures markets sell-off.

In the FX spaces expect AUDJPY sellers at pullbacks as long as this mood remains.

Trade Risks: If there is good on the stimulus bill despite then that will invalidate this outlook.