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.