AUD/JPY – Live and Historical Rates

The Australian Dollar and the Japanese Yen are two major currencies which do not actually form a major pair, or a commodity pair for that matter, despite the fact that the AUD is indeed a commodity currency. The chart above shows the AUD/JPY rate, which refers to the number of JPY needed to purchase an AUD.

The AUD

Powered by Australia’s commodity-based economy, the AUD is the world’s 6th most traded national currency, accounting for about 3% of the global FX turn over. Introduced in 1966, the AUD spent its infancy pegged to the British Pound. The arrangement was a reflection of the past colonial relationship between the two countries. The AUD didn’t become a floating currency till 1983. Australia’s (and thus the AUD’s) exposure to the Asian markets makes the currency an excellent choice for forex traders looking for diversification.

The JPY

The Japanese Yen is the world’s third most-traded currency, behind the USD and the EUR. As such, the JPY has obviously always been popular with forex speculators. The currency has been used for carry-trading massively, at one point to the extent of $1 trillion. Interest-rate drops have since altered this profitable trade-setup. Up Until 1973, the JPY had a fixed exchange rate with the US dollar, as required by the Bretton-Woods system. Since then, it has been a free-floating currency.

The JPY is propped up by the world’s third largest economy nominal GDP-wise, and 4th largest by PPP (Purchasing Power Parity). Japan’s domestic resources include gold, silver and magnesium, but it continues to depend on foreign countries (among them Australia) for a number of key commodities.

AUD/JPY Analysis

The JPY’s exposure to the AUD is based on commodities. The two countries are close trade-partners, and Japan is heavily dependent on Australian imports of heavy metals and energy. The JPY is also closely influenced by the USD. The AUD/JPY pair has sometimes presented good carry opportunities.

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