Saxo Bank’s chief economist Steen Jakobsen uses AUDJPY as an indicator for where the markets are and where they’re heading.

Jakobsen explains why the Aussie dollar through its links with China can be used to measure global growth and any upswing in the market’s appetite for risk. He also looks at why the Japanese yen is a good gauge for when markets are about to turn sour on risk.

Looking at how the pair is currently trading, Jakobsen shares his insight on the direction of the markets and how he is allocating assets.

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