The AUDJPY is in a range, but GDP looms large tonight.
The AUDJPY is in a range from the 77.50-80.00 level. We currently trade at the 79.25, closer to the upper end of the range. Today’s GDP numbers may provoke some upside as the market is looking for an improvement over the 4th quarter GDP, which could send us back to the 80.00 level. However, a miss could challenge the lower end of the channel. Keeping in mind that all the talk of a possible resolution in the US/China trade talks has failed to spur upside in the pair, we think the risk remains lower.