Carry Trade Unwinding!!!!!
Japanese Yen/Aussie Dollar Currency Pair
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh4OGxS979xEgFFTHsTsL1h4FAxcoG6kqnOWVJ5JBMSF6v1nvpFVI0HUUajLfjxJj-KDIFpW1EBp6Q7gSllw-ijsj5E3sKHkr4HJg6-dglxsBcgSBKVrGqyAmwbvIs7DM1x_7cgGRuzcD2W/s400/carry+trade.png)
Since the Earthquake in Japan the carry trade has been unwinding, especially today. THIS IS HUGE NEWS FOR THE STOCK MARKET. This generally shows up pretty well in the Yen/Aussie Dollar Currency pair. When it rises risk assets fall, including the stock market. For a description of what the carry trade is and its implications check this, this, this, this, and this.
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