Why The Aussie Yen Carry Trade Matters To Risk Assets

The Reserve Bank of Australia shocks markets again, hiking rates for a second consecutive time after having paused once before, and thereby setting precedence for the June FOMC next week, when the Fed is expected to “skip” a rate hike. Weston Nakamura explains the significance of the RBA’s policy behavior to other major central banks.

Weston also shows how and why AUD matters to risk assets, such as the S&P500 index, and explains how the (in)famous AUDJPY carry trade works - noting that AUDJPY is currently re-correlating with the S&P500 price action.

Finally, Weston shares his big revelation of the day with regards to his ongoing working theory of the China policy insider trading - discovering that he may have been incorrect in his reading of the China Property and Development Sector indices’ price action, but in doing so, ultimately provides more clarity on what may be happening in the peculiar market behavior in Chinese equities.

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Disclaimer: Nothing discussed on Market Depth should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Видео Why The Aussie Yen Carry Trade Matters To Risk Assets канала Blockworks Macro