AUD/JPY Brokers

The AUD/JPY forex pair represents the exchange rate of Australian Dollar and Japanese Yen - two significant Asian currencies. It reveals how many Japanese Yen are needed to buy one Australian Dollar. Through this pair, the correlation between these two economies - Australia and Japan, can be observed. Australia is a resource-rich country enjoying substantial income from commodities, while Japan is an industrialised nation reliant on high-tech exports. Currency trading often hinges on the strength of these industries. A strong commodity market typically strengthens the Australian dollar, while an upsurging tech industry usually bolsters the yen. This pair is also impacted by risk sentiment due to its correlation with global equity markets and trends, making it an attractive option for traders looking for currency pairs that react to global economic shifts. Overall, the AUD/JPY pair showcases the economic tug of war between a commodity-driven economy and a tech-based one.

The AUD/JPY pair represents the exchange rate from the Australian Dollar to the Japanese Yen. There are several fundamental influences that affect this pair.

1) Economic Policy: Decisions made by the Reserve Bank of Australia (RBA) and the Bank of Japan (BOJ) play a significant role. Monetary policy changes, changes in interest rates, or shift in fiscal policies by either of these banks can lead to fluctuations in the AUD/JPY pair.

2) Economic Indicators: These include GDP growth rates, unemployment rates, inflation, and business confidence indices among others in both Australia and Japan. For instance, robust economic growth in Australia relative to Japan could strengthen the AUD against the JPY, and vice versa.

3) Market Sentiment: The AUD is considered a "risk-on" currency due to Australia's high interest rates and correlation to global commodity markets, while the JPY is seen as a "risk-off" currency due to Japan's low interest rates. Therefore, in times of global economic uncertainty or turmoil, investors might favor the JPY over the AUD, leading to a fall in the AUD/JPY pair.

4) Commodity Prices: Australia is a major exporter of commodities, like iron ore and coal. Thus, an increase in these commodity prices can lead to an increase in the AUD's value, as they imply increased revenue for Australian exporters.

5) Geopolitical Events: Any event that disrupts the political stability of either country can have an impact on the AUD/JPY pair. For example, tensions in the Asia-Pacific region could cause volatility in this currency pair.

To trade this pair successfully, it's crucial to stay abreast of these key influences and understand how they drive the dynamics of the AUD/JPY exchange rate.