Listen to the market mood for the AUDJPY currency pair in the coming session:
The JPY is strong today as the Yen re-establishes itself as a safe-haven currency. Margin calls have been handed out in Japanese markets with the recent heavy falls adding to the Yen’s strength.
The AUD has been sold off due to its very close ties with the Chinese economy. Around 30% of Australia’s GDP comes from trade with China, so a slowdown in China impacts the AUD. Furthermore, a global slowdown brought on by the coronavirus also hurts the AUD and this double whammy is hurting the AUD today.
Therefore, expect AUDJPY sellers on rallies today.
Risks to this outlook
Any positive coronavirus news which changes risk sentiment may invalidate this outlook.