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.

AUDJPY Analysis

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.

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