AUD/JPY bulls cheer China-inspired optimism, mixed Japan data around 89.50

• AUD/JPY prints mild gains around the highest level in a week.
• China scraps quarantine rules for inbound travelers from early January.
• Japan’s Unemployment Rate, Retail Trade eased in November, Job/Applicants Ratio improved.
• Market sentiment stays firmer amid holiday mood, receding fears of hawkish central bank actions.

AUD/JPY grinds higher around 89.50 as bulls benefit from the cautious optimism in the market during the holiday season. In doing so, the cross-currency pair extends Friday’s gains to print the highest levels in one week, despite the latest retreat.

That said, the quote’s run-up could be linked to the risk-on mood in the market, mainly propelled by China, as well as receding hopes of the hawkish moves by the Bank of Japan (BOJ).