Forex News: Risk aversion not weighing on AUD as it has in previous risk flare-ups, nabCapital senior currency strategist John Kyriakpoulos says. Most noticeable in AUD/JPY, still above 103.00 despite its high-yield, risk status. "Investors aren't responding mechanically to plunging equity markets and selling high-yielding currencies in favor of low-yielders." Notes "no huge speculative short JPY position to unwind" as was case in August 2007. Focus now on which economies are "best coping with the global credit crunch and its associated downward pressure on house prices." AUD/JPY last 103.26.
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