AUD/JPY rebounds from 92.30 on better-than-expected Aussie’s Retail Sales

• AUD/JPY has witnessed bids from 92.30 despite flat Aussie’s Retail Sales.
• The BOJ is grabbing JGB to keep interest rates on the ground.
• This week: Japan’s Retail Sales will be a major event that investors will keep on the radar.

The AUD/JPY has witnessed decent buying interest around 92.30 after the Australian Bureau of Statistics reported Retail Sales figures. Outperformance has been witnessed in the print of Aussie’s Retail Sales in comparison with the market estimates as it is landed at 1.8%, higher than the preliminary estimate figure of 1%. While the previous figure was 1.8%, in-line with the month of February.

The aussie has been outperforming the Japanese yen for the past few trading sessions amid the broader weakness in the latter. The broader weakness in the Japanese yen escalated on Monday after the Bank of Japan (BOJ) announced an unlimited bond-buying program for a period of four days to keep the interest rates from any context of elevation. Meanwhile, traders dumped 10-year benchmark Japan Government Bonds (JGB) in the expectation of flat interest rates going forward.

Apart from that, a marginal slippage in the Japanese Unemployment Rate managed to activate minor profit-booking in the counter. The Statistics Bureau of Japan reported the Unemployment Rate at 2.7%, lower than the previous print and market estimate of 2.8%.

Going forward, the Retail Sales data from Japan’s docket will remain the key driver, which is due on Wednesday. The street is eying underperformance from Japan’s Retail Sales amid a market estimate of -0.3% against the prior print of 1.1%.