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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- Risk on environment and USD weakness levitate some EM equity markets to new all time highs, while the AUDJPY has remained flat in the past few months and struggle to break above its 85 resistance.
- In the 20 years, we have seen that the AUDJPY (also known as the classic carry trade currency) has co-moved strongly with risky assets, especially EM equities.
- The chart below shows the strong relationship between the two times series since January 2020; hence, if liquidity continues to push up asset prices with EM equities reaching new record highs, AUDJPY should also break above 85.
- Next level to watch on the topside on AUDJPY stands at 89, which was the high reached in January 2018.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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