RBA causes AUD drop

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On November 2, the Reserve Bank of Australia published its official Cash Rate and Rate Statement. In general, the bank left the Cash Rate unchanged and revealed that it would continue to purchase government assets until February 2022. However, the bank dropped the target of 10 basis points for the 2024 Australian Government bond.

Quoting the statement: " 
  • maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent
  • continue to purchase government securities at the rate of $4 billion a week until at least mid February 2022
  • discontinue the target of 10 basis points for the April 2024 Australian Government bond."

Monetary Policy Decisions

Statement by Philip Lowe, Governor: Monetary Policy Decision

On the announcement, at 03:30 GMT, the AUD/USD increased volatility by bouncing around in a 28 pip range before declining 34 base points. Afterwards the rate slightly recovered.

On a larger scale, the initial short-lived recovery was followed up a larger scale decline. During the seven hours following the announcement, the rate had already lost 64 base points.

Initial Reaction

Larger scale situation

Actual Topics

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