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.

[@shellywhite2145]

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[@shellywhite2145]

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[@shellywhite2145]

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[@journalofstitchery9584]

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[@Nylonnerves]

Why would anyone choose AUD in a carry trade when US rates are so much higher right now? US fed funds 5.00% to 5.25% vs RBA cash rate 4.10%

[@BlueWaterSTAX]

Another awesome analysis Weston. Keep up the great work. Blockworks is my favorite Macro channel 👌

[@gibdi0n]

I mean getting all this content for free is absolutely mindblowing. Thank you so much

[@Magnelibra]

Nikkei is definitly a beneficiary of the current carry trade! Thanks Wes

[@stumpy25lbs]

28:38 - love it! You got 'em Weston! 👊🏼

[@romacro3148]

RBA doesn't matter

[@whiteswordwarrior9995]

Imo its not about audjpy being used to fund anything, that would mean it lags and this type of trade is way too much of a niche to show this massive correlation. The answer is much more simple, audjpy is risk on and so is spx. Theyre just correlated because both are risk on trades

[@mattanderson6672]

Thanks Weston!

[@marcusjones2560]

Good man Weston

[@sandymilne224]

Well analyzed Weston! Thanks

[@LetsFixITJoe]

your silent...could you volume up the loudness ...?

[@ralphhardie7492]

🎉🎉 Good stuff 👍 Thank you 👍🙏

[@detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank ❤

[@angelkovatch1212]

Can you cover $NGL stock? Nancy Pelosis husband and Mark Green just loaded up shares! Could be a good one over the next few months.

[@szymonbaranowski8184]

great common sense

[@user-ho1pj8vm8l]

first