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Concerning the RBA monetary policy decision, Bloomberg's latest poll of 16 economists said, “Australia’s central bankers are set to revisit the question of whether to delay a planned taper of bond purchases as a worsening outbreak of the delta variant dims prospects of a rapid economic rebound."

“Reserve Bank of Australia will defer scaling back quantitative easing on Tuesday,” Ten of 16 economists surveyed mentioned per Bloomberg.

The piece highlights the RBA's recent readiness to scale back weekly bond purchases from September to A$4 billion ($3 billion) from A$5 billion while also citing the challenges for the Aussie central bank going forward. 

AUDUSD W1 09 06 2021 1309

 

AUDUSD has now completed a proper V-shaped reversal of its recent sell-off, which may not lead immediately to further gains toward the next key 0.7500 area, but is a kind of exclamation point encouraging the view that we have seen the lows for now after the run down to the 0.7105 area lows before this rally emerged. A record Australian trade surplus data point overnight helped remind us of the longer term shift in the current account fundamentals, which have accelerated in the Aussie’s favour over the last year, with the Covid outbreak and the RBA’s pedal to the QE metal providing off-setting pressure until the last week or so. This rally  also in the crosses  suggest that the AUD underperformance could be set to ease for a while here and mean revert to the positive side. 

AUDUSD D1 09 06 2021 1308

 

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