Trading currency crosses opens a whole new side of the currency markets, as different crosses possess different qualities that can suit any style of trading. Some crosses move fast and are extremely volatile with daily ranges that may exceed over 100 pips. While other crosses move relatively slow and exhibit low volatility, which is more suited for novice traders.
Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom line P/L. Discover the world beyond the majors where traders can expand their trading horizons.
All About the Crosses: [EUR/JPY] [EUR/CHF] [GBP/CHF] [GBP/JPY] [AUD/JPY]
All About the Crosses: EUR/JPY
AUD/JPY provides opportunities for traders of all time frames, and offers opportunities to traders who love volatility as well as range trading. Because it is held as a carry trade, it is highly sensitive to interest rate outlook changes in both Australia and Japan.
When the Australian interest rate outlook is bullish, the pair tends to trend. When the outlook turns neutral, the pair consolidates into a range. During times of range trading, traders can use slow stochastics, and real support and resistance levels (available in the Market News & Charts section) to spot their entry and exit points.
AUD/JPY is actively traded during Asian banking hours, when Japanese and Australian banks are open. Since it is most active after US equity markets are closed, the AUD/JPY is an ideal pair for people who want to trade outside of US business hours.
Another added dimension to trading crosses is the ability to collect substantial amounts of interest (i.e. GBP/JPY, NZD/JPY and other high yielding crosses) as the positive carry created by the interest rate differentials can add to a trader's bottom line P/L. Discover the world beyond the majors where traders can expand their trading horizons.
All About the Crosses: [EUR/JPY] [EUR/CHF] [GBP/CHF] [GBP/JPY] [AUD/JPY]
All About the Crosses: EUR/JPY
AUD/JPY provides opportunities for traders of all time frames, and offers opportunities to traders who love volatility as well as range trading. Because it is held as a carry trade, it is highly sensitive to interest rate outlook changes in both Australia and Japan.
When the Australian interest rate outlook is bullish, the pair tends to trend. When the outlook turns neutral, the pair consolidates into a range. During times of range trading, traders can use slow stochastics, and real support and resistance levels (available in the Market News & Charts section) to spot their entry and exit points.
AUD/JPY is actively traded during Asian banking hours, when Japanese and Australian banks are open. Since it is most active after US equity markets are closed, the AUD/JPY is an ideal pair for people who want to trade outside of US business hours.
AUD/JPY is a great pair to trade after US equity markets are closed!Analyst Says: This is a great pair for people who want to catch short-term moves during evening hours in the US! When the pair is ranging, it is easy to pick entry and exit levels using support and resistance.
- Average daily range: 80 pips
- Strong trends interspersed with periods of rangebound trading
- Good for: trading in all time frames
HOT Buttons: What moves AUD/JPY?
Gold Prices Since Australia exports gold, the value of the AUD is correlated with the price of gold.
Oil Prices The Japanese economy is very dependant on imported oil, so changes in the price of oil can affect the value of the Yen.
Australian Economic data AUD/JPY is very sensitive to Australian fundamental data.
Royal Bank of Australia and Bank of Japan Monetary Policy changes Since the AUD/JPY is a hot carry trade, changes in the interest rate outlook can cause sharp movements in the pair.
Fundamentals to Watch
Australian Employment Data Measure of employment in Australia. Employment is an important gauge of the health of an economy.
Australian GDP Gross Domestic Product. A measure of Australian economic growth. Steady, stable growth levels are ideal for developed nations.
Australian CPI Consumer Price Index. A measure of inflation in Australia. Too much or too little inflation could have implications for Australian monetary policy.
Australian Retail Sales A measure of health in the retail sector of the economy.
Australian Trade Balance Australia is a net exporter, meaning that Australia exports more goods than it imports. Changes in the trade balance can affect the price of Australia's currency.
RBA Rate Decision Royal Bank of Australia's decision on the interest rate level. Interest rate changes can have implications for the desirability of the AUDJPY as a carry trade.
Japanese Inflation A measure of inflation in Japan. Problematic when it is too low as this indicates little growth in the economy.
Japanese Consumer Spending A measure of how much Japanese consumers are spending. The Japanese economy is driven primarily by its export sector, but consumer spending is an important gauge of economic activity and prosperity.
BoJ Monetary Policy Meeting When Japanese bank officials meet to determine monetary policy. Has direct implications for currency traders since they often hint at whether or not they intend to intervene to protect the Yen from becoming too expensive—hence making their exports more expensive.
Japanese Trade Balance Japanese imports vs. exports – the Japanese economy is highly dependent on exports; a drastic change in this number can have implications on the value of the Yen.
Japanese Industrial Production A measure of activity in the Japanese manufacturing sector. This acts as a gauge for the level of production and growth in the economy.
Tankan Survey A quarterly business survey assessing Japanese business conditions. The headline number shows the difference between the proportion of optimistic businesses and the proportion of pessimistic businesses. A large positive number means that optimism pervades.
Gold Prices Since Australia exports gold, the value of the AUD is correlated with the price of gold.
Oil Prices The Japanese economy is very dependant on imported oil, so changes in the price of oil can affect the value of the Yen.
Australian Economic data AUD/JPY is very sensitive to Australian fundamental data.
Royal Bank of Australia and Bank of Japan Monetary Policy changes Since the AUD/JPY is a hot carry trade, changes in the interest rate outlook can cause sharp movements in the pair.
Fundamentals to Watch
Australian Employment Data Measure of employment in Australia. Employment is an important gauge of the health of an economy.
Australian GDP Gross Domestic Product. A measure of Australian economic growth. Steady, stable growth levels are ideal for developed nations.
Australian CPI Consumer Price Index. A measure of inflation in Australia. Too much or too little inflation could have implications for Australian monetary policy.
Australian Retail Sales A measure of health in the retail sector of the economy.
Australian Trade Balance Australia is a net exporter, meaning that Australia exports more goods than it imports. Changes in the trade balance can affect the price of Australia's currency.
RBA Rate Decision Royal Bank of Australia's decision on the interest rate level. Interest rate changes can have implications for the desirability of the AUDJPY as a carry trade.
Japanese Inflation A measure of inflation in Japan. Problematic when it is too low as this indicates little growth in the economy.
Japanese Consumer Spending A measure of how much Japanese consumers are spending. The Japanese economy is driven primarily by its export sector, but consumer spending is an important gauge of economic activity and prosperity.
BoJ Monetary Policy Meeting When Japanese bank officials meet to determine monetary policy. Has direct implications for currency traders since they often hint at whether or not they intend to intervene to protect the Yen from becoming too expensive—hence making their exports more expensive.
Japanese Trade Balance Japanese imports vs. exports – the Japanese economy is highly dependent on exports; a drastic change in this number can have implications on the value of the Yen.
Japanese Industrial Production A measure of activity in the Japanese manufacturing sector. This acts as a gauge for the level of production and growth in the economy.
Tankan Survey A quarterly business survey assessing Japanese business conditions. The headline number shows the difference between the proportion of optimistic businesses and the proportion of pessimistic businesses. A large positive number means that optimism pervades.
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