Listen to the latest market mood for the AUDJPY pair.

Weak AUD, Strong JPY

Wall St suffered heavy losses last week as global equity markets plunged around the world on COVID-19 second wave fears. Those fears have grown over the weekend with several US states experiencing a record increase in COVID-19 cases. Beijing shut a fruit and vegetable market and imposed lockdown restrictions on nearby residential areas.

Asian equity markets traded negative to start the week and US futures are also starting the week on the backfoot. This negative sentiment will weigh on the Antipodean currencies of the AUD and the NZD.
The JPY should remain strong on second wave virus fears as the number of infections has been creeping higher in the US.

Therefore expect AUDJPY and NZDJPY sellers at market and on pullbacks today.

We expect this outlook to play out over the next 6-10 hours through to New York close as long as these trade conditions remain.

Main Trade Risks

The other risk is if there is some positive COVID-19 news that will result in the JPY weakening.