This week, the AUD/JPY pair reached highs since December 2018. AUD/JPY is currently trading around the 83.00 level and economists at Westpac forecast the pair at 84.50 in the next weeks while expect AUD/JPY to end the year trading at around the 87.00 neighborhood.
“The AUD/JPY recovery from pandemic lows is not yet a year old and should extend into 2022, backed by a coordinated global upswing supporting commodity demand. This should reinforce the rebound in Australia’s domestic economy from a comparatively contained covid situation, with GDP recovering its pandemic losses by June 2021.”
“The surge in global bond yields should support AUD/JPY, given the BoJ’s commitment to ‘around’ 0% yield for the 10 year JGB. While the RBA’s dedication to loose policy is very clear, steepening yield curves globally should help A$ on crosses.”
“Multi-day/week risks look to be tilted towards 84.50, with our year-end forecast 87.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.