AUD/JPY outlook: Bullish signals clash with rising bond risks.AUD/JPY has reclaimed its role as a risk proxy, surging on low volatility and widening yield spreads to levels last seen in mid-2024. Correlations with equities and volatility indices confirm the pair's sensitivity to risk appetite, but rising global bond yields cast a shadow over the bullish narrative.
Spending surge flips RBA outlook as markets price hikes.October's spending surge has flipped the script on Australia's cautious Q3 narrative, fuelling RBA rate hike bets and driving AUD/USD even higher. While technicals favour Aussie bulls, bond futures look stretched, raising squeeze risk.