Australian Dollar Firms After RBA Decision
July 05 2021 - 10:02PM
RTTF2
The Australian dollar climbed against its most major
counterparts in the Asian session on Tuesday, after the Reserve
Bank of Australia left its cash rate unchanged and said it will
continue its bond buying program when it ends in early
September.
The Reserve Bank of Australia maintained its cash rate and the
three-year government bond yield target at 0.1 percent, as
expected.
The central bank will retain the April 2024 bond as the bond for
the 3-year yield target.
The QE programme was extended at a rate of $4 billion a week
until at least mid November. The current bond purchase program will
end in early September.
The RBA reiterated that it will not increase the cash rate until
actual inflation is sustainably within the 2 to 3 percent target
range. The Bank's central scenario for the economy is that this
condition will not be met before 2024.
The aussie climbed to 8-day highs of 0.7572 against the
greenback and 83.93 against the yen, from its early lows of 0.7524
and 83.47, respectively.
Reversing from its previous lows of 1.5756 against the euro and
0.9282 against the loonie, the aussie rose to near a 4-week high of
1.5680 and a 1-week high of 0.9334, respectively.
The currency is likely to locate resistance around 0.78 against
the greenback, 86 against the yen, 1.54 against the euro and 0.96
against the loonie.
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