Anna 
The AUD/JPY pair retraced its recent gains in the previous session due to the Japanese Yen’s (JPY) notable intraday strength, potentially influenced by reported intervention by Japanese authorities to support the domestic currency. Masato Kanda, Japan’s senior currency official, declined to comment on whether Tokyo had intervened in response to market movements .
The Japanese Yen (JPY) had earlier tumbled to new multi-decade lows, driven by factors such as the Bank of Japan’s (BoJ) decision to maintain unchanged policy settings last Friday, cooling inflation indicators in Japan, and overall positive sentiment in equity markets. These developments diminished the safe-haven appeal of the JPY. Furthermore, expectations for a sustained wide interest rate differential between Japan and other countries suggest a continued downward trajectory for the JPY .
On the other hand, the Australian Dollar (AUD) found support from growing hawkish sentiment surrounding the Reserve Bank of Australia (RBA) following the release of last week’s Consumer Price Index (CPI) inflation data. The unexpected surge in inflation figures prompted economists to revise their forecasts significantly. Warren Hogan, chief economic adviser at Judo Bank, anticipates the RBA to raise the cash rate three times this year, potentially reaching 5.1%, with the first hike likely in August .
Investors are now awaiting the Retail Sales data for March, scheduled for release on Tuesday, which provides crucial insights into Australia’s consumer spending patterns, directly impacting inflation and GDP trends within the country. This data release is expected to further shape market sentiment around the AUD/JPY pair.
