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17 Sep 2015
AUD/JPY: retail business backing Aussie investments - Nomura
FXStreet (Guatemala) - Analysts at Nomura noted that Japanese retail investors appear more aggressive in their Australian investments compared to institutional investors.
Key Quotes:
"Specifically, margin traders, so-called “Mrs. Watanabe”, are actively building up their long positions on AUD and NZD."
"According to the ratio of daily net long positions on Gatame.com, the ratio fell at one point through mid-August, but has now increased to 75% for AUD and 80% for NZD, which are much higher than the average (both 63%) since April 2012.
Many investors are worried about the level at which Mrs. Watanabe’s stop-losses will be triggered. Some investors have put on more margin, and although the trigger might not necessarily be a single level, we suspect it could be around and the AUD/JPY 80 mark. If AUD weakens and JPY strengthens further, stop-losses by Mrs. Watanabe could spur a further decline in AUD/JPY."
Key Quotes:
"Specifically, margin traders, so-called “Mrs. Watanabe”, are actively building up their long positions on AUD and NZD."
"According to the ratio of daily net long positions on Gatame.com, the ratio fell at one point through mid-August, but has now increased to 75% for AUD and 80% for NZD, which are much higher than the average (both 63%) since April 2012.
Many investors are worried about the level at which Mrs. Watanabe’s stop-losses will be triggered. Some investors have put on more margin, and although the trigger might not necessarily be a single level, we suspect it could be around and the AUD/JPY 80 mark. If AUD weakens and JPY strengthens further, stop-losses by Mrs. Watanabe could spur a further decline in AUD/JPY."