From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
The US Dollar Index $DXY has been our main focus as it nears the upper boundary of its recent range.
Where the USD heads next will have wide-ranging implications across asset classes by either providing a tailwind for risk assets or a headwind in the case it resolves higher from its year-to-date range.
But, as the market continues to chop sideways, we want to direct our attention to one of the most important risk gauges in the currency market.
That’s the Aussie-Yen.
In this week’s post, let’s check in on the AUD/JPY to see what information we can glean regarding risk appetite and what it could mean for other markets.
Let’s dive in.