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.

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