In its November monetary policy decision announced on Tuesday, the Reserve Bank of Australia (RBA), has decided lower interest rates to 0.10% from the previous 0.25%, as expected, thus bringing rates to their all-time low.
The central bank has also announced a expansion of its Australian $ 100 billion bond purchase program. The RBA set its three-year bond yield target at 0.10%.
“The package includes the purchase of 100 billion government bonds with maturities of around 5 to 10 years over the next six months,” the statement read.
AUD / USD reaction
The Australian dollar has reacted against the US dollar with a strong rebound after the announcement, rising first to 0.7062, touching the highs of the day previously tested at 0.7063, then falling close to 25 pips towards 0.7037, its lowest level of the day.
At the time of writing, the pair AUD/USD it is trading above 0.7040, losing 0.23% on the day.
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Credits: Forex Street
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