AUD/JPY lacks a clear directional bias, with the rally in commodities limiting the draw back in the Aussie dollar, whilst inventory market volatility maintaining the bulls at bay.
“The Dow Jones Industrial Average went on pretty a rollercoaster ride, beginning the day up greater than a hundred factors at document highs solely to flip bad an hour later earlier than recuperating returned into wonderful territory,” BK Asset Management’s Kathy Lien referred to in her analysis.
Further, the rally in the Asian shares has paused on Thursday, perchance monitoring Wall Street’s risky charge action. As such, the AUD is struggling to acquire upside traction at press time.
However, dealers are now not inclined to lead the fee motion either. That’s due to the fact commodities are rallying on expectations of a quicker international monetary recovery. Notably, Comex copper superior to $3.7955 a pound ($8,350 a tonne) on Wednesday to hit the best possible stage considering that 2012. Copper is one of Australia’s pinnacle exports.
However, the pair might also face promoting stress if the rising bond yields weigh over inventory markets, boosting demand for the anti-risk yen.