Listen to the market mood for the AUDJPY currency pair in the coming session.
We are expecting the JPY to be weaker today on continued improved risk sentiment following a recovery in Wall St. as the S&P 500 closed up +1.50%, the NASDAQ +2.10% and the Asian Equity market has followed in the green overnight too.
We are expecting AUD strength today after RBA remained on hold at their rate meeting this week. The expectations of a rate cut at their next meeting are now down to only 13%. As well as the positive risk-on tones this should further support AUD today.
Expect AUDJPY buyers on pullbacks.
Risks to this outlook
Like yesterday, if we see a fall in equities on coronavirus fears then AUDJPY will find sellers and invalidate this outlook, so keep a close eye on risk sentiment which is vulnerable to large swings at the moment.