Back to watching the AUD/JPY

I think the AUD/JPY is due to decline (represented by the blue line and the right hand margin).

In turn, the Australian 2 year government bond yield should also pullback.

Which in turn, suggests that commodities prices (as expressed in the CRB Index) are heading lower.

Specifically, energy and agricultural commodity prices.

Industrial and Precious metals have mostly completed their retracements.

A weaker AUD versus a (slightly) recovering Yen also portends weakness int he ASX 200.

August 4, 2022

by Rob Zdravevski

rob@karriasset.com.au