The Australian dollar getting weak again. Overview for 02.03.2021.

After the March session of the Reserve bank of Australia, the Australian dollar in pair with its US counterpart put its restoration on a halt. The current quotation is 0.7762.

Little surprises were expected from the RBA session this time. The interest rate remained recorly low — at 0.10% per annum, as forecast before; other parameters of the monetary and credit policy also remained in force. However, there were some surprises in the commentaries of the regulator. Particularly, it claimed that it would take the interest rates of the state debt under control and would not let them grow beyond logical. This decision was induced by the recent global rally of selling state bonds, which made Central banks react instantly. To keep the values under control, the RBA is ready to correct bonds purchases according to current market moods and reactions.

Moreover, this time the RBA also said it could possibly extend the buyback program.

As for the interest rate, the situation did noy change. The RBA still hopes that tge rate would not be growing in the nearest 2-3 years until inflation gets steadily between 2-3%. For this to happen, they need wages to grow somewhat faster than now. This, in turn, needs the labor market to become more active and employment to grow, which will hardly be noticeable until 2024.

The aussie is additionally harmed by the overall market situation: investors are again interested in safe-haven assets, including the USD.

Trade the News!

Seize the market opportunities!
Start trading with a reliable broker.
Let an expert help you get started!

Source: RoboForex


Comments

Leave a Reply

Your email address will not be published.

Trade the News!

Seize the market opportunities today! Start trading with a safe and reliable broker.

Let's help you get started!