Listen to the latest market mood for the AUDJPY pair.

The risk tone has improved this am as optimism about a potential COVID-19 vaccine has led to Dow futures moving up 400 points. Novavax announced on Monday that it started its first human trial on its coronavirus vaccine.

In this environment the AUD as a high beta currency gains value so expect AUD strength for the session alongside the NZD and CAD. Conversely, we can expect safe haven flows out of the USD, CHF, and JPY. Therefore, look to pair strong currencies against a weak one for today’s session. Expect AUDJPY buyers at market and pullbacks today.

We expect this trade to play out over the next 6-8 hours.

The main risks to this outlook:

• Any negative news on COVID19 will change sentiment.
• Any negative rhetoric between the US and China could also change sentiment.