AUD/JPY remains one of the most reliable risk barometers on a multiday/week timeframe, economists at Westpac Institutional Bank said.
Key quotes
“Weak energy prices hurt AUD and benefit JPY, reinforcing the risks to AUD/JPY from the coming weeks of dismal economic data and earnings reports globally.”
“AUD/JPY is well below its long-term average, though the 60-70 range is quite familiar, accounting for 10.7% of trade since the Australian dollar was floated in 1983.”
“The average rate since 2000 is below 82. This may be a more relevant reference point, meaning AUD/JPY is not dramatically weaker than its average for this century.”
“We see multi-week risks to 64.”
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