In this month’s Cross Asset Review produced by Foresight Analytics, we look at the outperformance of domestic assets despite losses in global equity markets and rising uncertainty around the global economic outlook. Gold, bond assets and bond proxies (AREIT/GREIT) also outperformed as investors sought exposure to safety assets. A weaker AUD relative to the major trading partners delivered a strong and positive translation effect for unhedged investors. Currency volatility for AUD/JPY continues to be higher then its long-term average. In May alone AUD lost 4.3% against Yen, to be down 9% over the past 12 months.
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