The AUD/USD has reacted downward following the Bank of Australia’s Reserve decision to lower its interest rates to a record low of 0.10% and expand its QE program by $ 100 billion.
The pair bounced at first on the news, rising to near the day’s highs at 0.7062 / 63, but has subsequently dropped about 35 pips, reaching a daily low of 0.7030.
At time of writing, the AUD / USD is trading above 0.7031, shedding 0.36% on the day.
The RBA rules out raising its cash rate in at least three years
In its statement, the RBA also made clear that it will not increase the cash rate until real inflation is within a target range of 2% to 3%, and expects that it will not raise rates for at least three years.
Credits: Forex Street
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