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Live and Historical AUD/JPY Rates
This chart represents the relationship between the Australian Dollar (AUD) and the Japanese Yen (JPY) or the number of yen that can purchase one Aussie dollar. Though both JPY and the AUD are major currencies in the world market, they do not form a major pair or a major commodity pair.
The Australian Dollar
The Australian dollar made its debut in the world market in 1966. At that time, the interest rate for AUD was linked to the British pound, but it has been a floating currency since 1983. AUD maintains its popularity as a carry currency because of its consistently high interest rates and because of the lack of intervention from the Australian government. Australia's top commodity exports are iron ore, coal, gold, crude oil, and liquefied natural gas. These commodities have only strengthened the trading relationships between Australia and the Asian countries that neighbor it. These factors significantly contribute to making AUD the sixth most traded currency in the world.
The Japanese Yen
Following the US dollar and the euro, the Japanese yen is the third most traded currency in the world market. For years the JPY exchange rate was fixed to the US dollar under the Bretton Woods system, but JPY has had a floating exchange rate since 1973. JPY is widely used as a carry trade-to the tune of $1 trillion. Since then, the value of the yen has dropped. Japan's economy is supported by its domestic resources-gold, magnesium, and silver. Japan maintains sufficient stores of these resources for current economic demands, though it remains dependent on other countries for many minerals necessary for modern industry.
Australia and Japan are very close trade partners. The yen also has a stronger relationship with the US dollar than AUD does. This means that changes in the US economy may produce a significant change in AUD/JPY. As with most AUD pairs, the best way to profit is from changes in commodity prices. Because Japan is extremely dependant on Australian heavy commodities for its industry (heavy metals and energy), this is even more the case for this pair. There have been intermittent opportunities to use the two as a carry pair.
November 05, 2010 at 10:52 AM • Comment
Today markets were on a generally bullish footing, with bourses all around the world rallying strongly, yet this is not one of those days where speculators gobble up everything they can get their hands at, as the sovereign...Read More
November 05, 2010 at 10:46 AM • Comment
The Fed's decision yesterday has led to a firestorm in the FX market today, as governor after governor of central banks spoke to voice his worries about U.S. policy, with Asians predictably being the most strident protestors. The...Read More
November 02, 2010 at 2:28 PM • Comment
USDJPY made fresh 15 year lows yet again last week as the Bank of Japan refrained once more from officially intervening in the forex market. The week began with USDJPY trading off of its weekly low of 80.41...Read More
November 02, 2010 at 1:55 PM • Comment
During last week's trading sessions, AUDUSD sold off a bit after mixed economic results came out of Australia and despite some recovery in the price of gold. The pair started the week out on a firm note by...Read More
November 02, 2010 at 1:40 PM • Comment
The U.S. Dollar had a mixed week against the major currencies, falling against most of them, but gaining slightly against the Australian Dollar and the Euro. The set of economic data out from the United States had a...Read More