Rebound in the Australian dollar today
I have been keeping a close eye on AUD/JPY as a barometer for global risk appetite. The pair has traded in a 3% range since the flash crash at the start of the year. That's an unusually tight spread for a pair that can move that much in a day.
When it breaks, I think a great trade is to 'go with' it. Right now, the upside beckons as the pair quickly wiped out yesterday's RBA-inspired dip. There is increasing optimism about Australian exports and the global economy.
I talked about this pair with BNN last week:
