CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Pairing – The amount of Japanese Yen (JPY) that one can buy for every Australian dollar (AUS).
AUD – World’s fifth most traded currency
JPY - World’s third most traded currency
Popularity – The governments less than hands-on approach to Forex markets, as well as the country’s high interest rates mean that this is a popular currency amongst traders. This is also aided by the country’s stable economic situation.
Carry trade – the Carry trade is a trading strategy in which traders buy low-yielding currencies and invest in those with a substantially higher-yield. With Australia having high interest rates, and those in japan being kept low by the national bank, this pairing is a good choice for the Carry trade. However, times of global crisis, as in 2008, can change this, as the value of the yen may rise substantially.
Commodities – Commodities can have a huge impact on the price of the Australian dollar, more so with most other currencies, the price of gold is especially important when trading in AUD.