Australian Dollar / Japanese Yen

AUD/JPY is the cross rate showing how many Japanese yen one Australian dollar is worth. Because it compares the Australian dollar, the currency of an economy built on commodity exports, with the yen, known for its safe-haven character, it is watched in the market as one of the indicators of risk appetite.

When the appetite for risk strengthens, investors turn to relatively higher-yielding currencies, so AUD/JPY can tend to rise; when uncertainty grows, the yen attracts demand and the pair can fall. For this reason, there are frequent periods when AUD/JPY moves together with stock markets. The interest rate gap between the Reserve Bank of Australia and the Bank of Japan is the pair's fundamental driver. This relationship does not work with equal strength in every period; even so, the pair is often used as a barometer of market participants' risk perception.

Japan is one of Australia's main export markets; trade in coal, natural gas and iron ore links the two economies. On Lzzo.com, the AUD/JPY value is a cross reference rate derived via the US dollar from market exchange rates; it is not a current trading price or a bank buy/sell price.