AUD/JPY: Steady awaiting risk sentiment to kick-off one way or the other

The cross is stuck between central banks looking to ease and geopolitical risks.
There has been a lack of catalysts for both the Yen and AUD.

Ross J Burland FXStreet

AUD/JPY is currently trading at around 72 the figure within a narrow range in the consolidation of the slide from the September highs on the 74 handle as markets remain in risk-off mode.
US and Sino trade wars are here to stay by the sounds of things and markets are soaking up the negative prospects for the long haul.

This week was an unlikely platform for trade talks to gather momentum on the sticking points which the US and China are at loggerheads over and considering the recent antagonistic moves from both sides, markets are positioning for a poor outcome from the negotiations, which incidentally the Chinese are said to be cutting a day short.

Elsewhere, there have been a lack of catalysts for both the Yen and AUD. In recent trade, the Aussie did drop a few pips on the consumer sentiment data, but markets are trending sideways, waiting for bigger things.

US drivers

Overnight Federal Reserve Powell glossed over the US economic backdrop with some bullish commentary which lifted the US Dollar somewhat but the US Producer Price index (PPI) was a pretty dismal prelude to tonight's key US consumer Confidence Index data - PPI fell 0.3% m/m in September on both a headline and core basis, the biggest drop since February 2015.

Meanwhile, the cross is stuck between central banks looking to ease, (US Fed Chair, Jerome Powell, has announced that the Fed would recommence outright Treasury asset purchases to try to calm the repo market), and various geopolitical risks such as Brexit, souring relations in the Middle East and between the US and trade counterparties, such as China and Europe.

AUD/JPY levels

AUD/JPY

Overview
Today last price	72.05
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	72.05

Trends
Daily SMA20	73.06
Daily SMA50	72.51
Daily SMA100	73.96
Daily SMA200	76.2

Levels
Previous Daily High	72.55
Previous Daily Low	71.95
Previous Weekly High	73.38
Previous Weekly Low	71.73
Previous Monthly High	74.5
Previous Monthly Low	71.1
Daily Fibonacci 38.2%	72.18
Daily Fibonacci 61.8%	72.32
Daily Pivot Point S1	71.81
Daily Pivot Point S2	71.58
Daily Pivot Point S3	71.21
Daily Pivot Point R1	72.42
Daily Pivot Point R2	72.79
Daily Pivot Point R3	73.02

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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