Listen to the market mood for AUDJPY in the coming session:
The JPY is weaker on outflows from the JPY on risk-on sentiment as Wall Street makes more record highs on optimism from the US-China phase 1 trade deal.
The AUD should remain supported today on Chinese Industrial Production data for December printed at 6.9% vs 5.9% expected. This is a strong print and although y/y GDP was a slight miss at 6.1% vs 6.2%, it was still within the target range of 6-6.5%.
Expect AUDJPY buyers on pullbacks.
Risks to this outlook
If US-China trade relations sour, expect JPY strength and AUD weakness on a risk-off move.