AUD/JPY and NZD/JPY: what are you watching?
The antipodean-yen crosses are the classic risk barometers: they rise when the world wants risk and fall fast when it doesn't. Watching them tells you more about sentiment than most indicators.
Share:
- how you read these crosses for sentiment
- the levels you're tracking
- whether you trade them or just watch them
Background: risk-on risk-off explained and commodity currencies.
Background: Commodity currencies explained: the Australian, New Zealand and Canadian dollars and the Norwegian krone
Why the currencies of big commodity exporters move with iron ore, dairy and oil prices, what each country actually exports, and when the link weakens.
What are commodity currencies?
Currencies of countries where commodity exports are a large share of trade, such as the Australian dollar (iron ore), the New Zealand dollar (dairy), the Canadian dollar (oil) and the Norwegian krone (oil and gas).
Why does the Australian dollar follow China?
Iron ore is Australia's largest export and much of it is sold to China, so Chinese demand and data affect Australia's export income and its currency.
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