AUD/JPY

The AUD/JPY represents the Australian dollar against the Japanese yen. Currently, this is the fifth most traded currency pair, exhibiting a high level of liquidity for forex traders. Both highly developed countries with generally stable economies, Australia and Japan complement each other’s exports, rarely competing. Australia, with its vast agricultural resources, exports commodities and agricultural products.

Meanwhile, Japan focuses on manufacturing and tech, leading the way in the electronics and automobile industry. The Aussie dollar is popular in the forex market for its high-interest rates. On the other hand, the Japanese yen is known as one of the safer currencies, with the Bank of Japan deliberately keeping interest rates low. 

The price of AUD/JPY is heavily affected by several key factors, such as:

• Interest rates and monetary policies set by either the Reserve Bank of Australia (RBA) or the Bank of Japan (BoJ). Unlike other central banks, the RBA is known for being hands-off, intervening as little as possible.


• In the case of Australia, Chinese intervention. As China is Australia’s largest trading partner, major news from China affects trade relations which, in turn, affects Australia’s commodity prices and, thus, the Aussie dollar.


• Investor sentiments such as increased or decreased risk appetite can heavily influence the price of this currency pair.