0 Jon Steeler Posted June 24, 2019 Author Share Posted June 24, 2019 Quote Link to comment Share on other sites More sharing options...
0 Djamel Brahimi Posted June 24, 2019 Share Posted June 24, 2019 Since mid April we have seen the AUDJPY pair continually get weaker. This is due to a couple off macroeconomic conditions that has made it harder for the Australian dollar to gain any strength especially against the yen. Those conditions have included the escalating situation in Iran worrying global markets, the global slowdown which has resulted in a number of central banks including the RBA cutting rates and finally the US and China trade war which has had a large impact on the Australian economy due to the fact that the US and China especially are large trading partners of the country. The trade war has seen China’s economy weaken which has reduced their imports and intern slowed down Australia’s export and manufacturing sectors resulting in a weakening AUD. With the G20 meeting coming up and Presidents Trump and Xi due to meet to discuss trade we could see some retracement in the AUD against the JPY. However the complexities of this negotiation are still to great and it will take a great concession from one side before they can even come close to a deal so I believe we will continue to see the AUD weaken against the JPY in the medium to long term. Quote Link to comment Share on other sites More sharing options...
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