The Australian Dollar (AUD) against the Japanese Yen (JPY) is an exciting pair for its relation to risk. The pair is often among one of the most highly correlated pairs to price action in US equities on a short to medium term basis. The pair generally tends to rise in a low risk environment on carry flows while the opposite is true when we see a 'risk-off' approach in the markets.
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The latest rally in risk assets could really take off if $USDCNH breaks below the 7.1000 handle as a confirmed breach of this level likely reflects a tangible downshift in the US-China #TradeWar
Look at the close relationship between the offshore Yuan, $GC_F, $AUDJPY and $ES_F https://t.co/uHomDse0as
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