-YEN: Elevated By Risk-On Flows Amid Regional Holidays Across Australia

AUD/JPY has gone bid at the start to the week, as participants judged that the odds for a fiscal deal between the White House and Democrats are a touch higher, while U.S. President Trump's medical team said that he could be discharged from hospital as soon as Monday. The news that Japanese NEC will buy Swiss fintech Avaloq for JPY236bn and potential Gotobi day flows have further dented the yen, while liquidity has been limited by market holidays across several Australian states. The rate has already wiped out losses registered last Friday on the back of the confirmation that the Trump couple had contracted coronavirus.

• Regional data releases have been rather uninspiring, with final readings of Australian CBA Services & Composite PMIs & Japanese Jibun Bank counterparts revised marginally higher. Elsewhere, Australian NAB Business Confidence recovered to -4 from -8.
• The pair last trades +44 pips at Y75.86, with bulls looking for a clean break above Oct 1 high of Y76.06, which would open up the 50% retracement of the Aug 31 - Sep 24 sell-off/50-DMA at Y76.22/23. Bears need a rout past Oct 2 low of JPY74.93 before taking aim at round figure/Jul 10 & Sep 24 lows of Y74.00/73.98, a key support zone.
• As a reminder, BoJ Governor Kuroda will speak later today.