Listen to the latest market mood for the AUDJPY pair.

Weak AUD, Strong JPY

Risk sentiment is negative this morning as the Asia-Pacific stocks take their lead from the downbeat picture in US stocks which saw the Nasdaq lose 5% and the Dow Jones lose 2.78%. This negative sentiment should keep the AUDJPY pressured on the session. The AUD as a high beta currency tends to lose value in a risk-off market. Similarly, the JPY as a safe haven tends to gain value in a risk-off market. This means that investors and traders will expect any AUDJPY rallies to find sellers.

However, the market is starting to consolidate before the US jobs data in the US session, so that is a risk factor for this trade outlook. A strong jobs number will invalidate this outlook. However, a weak print will confirm the risk-off bias.

Expect sellers on the AUDJPY on rallies higher.

Trade Risks:

  • A better than expected jobs number above 2.3 million.
  • Any positive news that changes the current negative risk tone.