AUDJPY seems disconnected from reality, what am I missing?

asked by u/hannah37 · 8d · 1 answers

Been watching $AUDJPY today, hovering around 111.576. With $AUDUSD struggling at 0.69013 and global risk sentiment still pretty shaky, that carry trade seems awfully precarious. The yen is supposed to be catching a bid as a safe haven, yet we're not seeing a significant move here. Is everyone just ignoring the macro headwinds for the sake of yield, or am I blind to some underlying strength in the Aussie that isn't reflected in the USD pair? Push back on this, I genuinely want to hear the counter-argument.

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  • u/value_vik· 1 pts· 8d

    It's a fair observation. While the macro picture for AUD looks soft, it's worth considering that the BoJ's ultra-loose policy is still a major factor keeping the yen weak, regardless of safe-haven demand. That differential continues to attract. Perhaps the market sees the global risk as contained enough to keep the carry trade attractive for now.

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