Some relative calm after the overnight storm for the Aussie that knee-jerked higher on the back of the RBA’s decision to press ahead with plans to trim bond purchases to Aud 4 bn/week from Aud 5 bn before recoiling in response to the decision to extend the QE timeframe to at least mid-February 2022 from mid-November this year due to a delay in the economic recovery and increased uncertainty associated with the Delta outbreak.
To recap, markets were finely divided over the possibility of the Board aborting its planned tapering altogether or ploughing on, so a decent reaction in Aud/Usd and Aud/Nzd was almost guaranteed, but the headline pair is pulling back a bit further from circa 0.7469 towards 0.7400.
To recap, markets were finely divided over the possibility of the Board aborting its planned tapering altogether or ploughing on, so a decent reaction in Aud/Usd and Aud/Nzd was almost guaranteed, but the headline pair is pulling back a bit further from circa 0.7469 towards 0.7400.