AUD vs USD/JPY correlations and CAD vs Stock markets

Brian Twomey Brian's Investment

Problem pair USD/JPY is not only a mislocation dilemma but a correlation predicament. AUD/USD correlations to its cross run as correlational correct but USD/JPY permeated AUD/USD and AUD cross pairs. If USD/JPY indulged itself inside AUD then it assumed USD/JPY fixated inside NZD, EUR and GBP.

The question is what is the USD/JPY price driver rather than what drives AUD. Correlations are factored from MA and AUD/USD trades above 0.7647 and USD/JPY above 106.00's. A correlational break would change if AUD/USD breaks below.

AUD/USD vs Cross pair correlations

AUD/USD Vs AUD/JPY +93%.

AUD/USD Vs AUD/CHF +91%.

AUD/USD Vs AUD/CAD +78%.

AUD/USD Vs AUD/NZD +45 %.

USD/JPY vs AUD

USD/JPY Vs AUD/USD +70%.

USD/JPY Vs AUD/JPY + 90%.

USD/JPY Vs AUD/CHF +92%.

USD/JPY Vs AUD/NZD +96%.

USD/JPY Vs AUD/CAD +15%.

USD/JPY longs and shorts are the exact same trades as longs and shorts to AUD.

USD/CAD vs S&P's and toronto Index

USD/CAD rose 161 pips yesterday, a 1.3% increase to 0.015486 as a decimal while Toronto dropped 146 points or minus 0.772% or as a decimal -0.00772. Normally, Toronto is a big mover index and trades 3 and 400 pip days. Its outperforms daily USD/CAD.

The S&P bottom today is located at 3895.88 and 3859.30. USD/CAD bottom is located at 1.2435 and 1.2450. Toronto bottom today is located at 18742.28. The S&P's lack movement and USD/CAD generally outperforms the S&P's.

Both stock markets open at 9:30 am EST. The BOC releases interest rates at 9:00 am and the day is set for Toronto and USD/CAD until the famous BOC Noon Day then Ottawa 12 pm.

Yesterday, USD/CAD traded from 0.012435 to 0.012525.

Author

Brian Twomey

Brian's Investment

Brian Twomey is an independent trader and a prolific writer on trading, having authored over sixty articles in Technical Analysis of Stocks & Commodities and Investopedia.

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