-YEN: Adds A Couple Of Pips While Searching For New Catalysts

The combination of negative vaccine news and fiscal deadlock on the Hill kept a lid on AUD/JPY yesterday. The rate dipped early on, as STAT reported that J&J halted their Covid-19 vaccine study, and the subsequent recovery attempt was limited by headlines pointing to persistent divisions between House Democrats, Senate Republicans and the White House over the next stimulus package. In U.S. hours, the NYT reported that Eli Lilly was forced to pause their trial of an antibody drug for Covid-10 due to a potential safety concern, which kept risk appetite in check.

• The rate last operates at Y75.56, just marginally above neutral levels, amid little in the way of fresh catalysts so far. Bears look for a dip through Oct 7 low & 61.8% retracement of the Sep 24 - Oct 9 rally/Oct 2 low at Y74.95/93, which would turn focus to Sep 24 low of Y73.98. On the flip side, a jump above Oct 9 high of Y76.52 would please bulls, allowing them to set their sights on Sep 10 high of Y77.74.
• Australia's Westpac Consumer Confidence Index rose to 105.0 from 93.8 this month, and although the pace of improvement slowed to +11.9% M/M from +18.0%, Westpac still deemed the reading an "extraordinary result". In accompanying commentary, they attributed the solid reading to consumers' reaction to the Federal Budget and noted that the index sits at its highest level since Jul 2018 & 10% above average level in the six months prior to the pandemic.
• Focus moves to final Japanese industrial output figures, due later in the day.