RBA raises defense, AUD Strengthens! - Kakiforex | Forex markets for the smart money. RBA raises defense, AUD Strengthens! RBA raises defense, AUD Strengthens!

February 25, 2021

RBA raises defense, AUD Strengthens!

 The Reserve Bank of Australia (RBA) resumed buying 3-year government bonds for the second time this week to continue to maintain its government bond yield target from rising above 0.10% due to recent commodity prices and global inflation.

Despite the latest announcement by the central bank, Australia's 3-year bond yields continued to show an increase of around 0.14%. Meanwhile, 10-year bond yields also jumped to 1.737%, the highest in 21 months.

The RBA today bought A $ 5 billion in bonds, the second purchase made this week after A $ 1 billion on Monday did not have much of an impact amid rising trade reflections.

The central bank also announced that it will buy A $ 3 billion in securities mature in April 2023 and 2024, as well as A $ 2 billion from November 2028 to 2031 under its quantitative easing program.

The rise in Australian bond yields has prompted Aussie dollar trading to soar to its latest 3-year high in the Asian session, approaching the 0.8000 price level against the USD.

Meanwhile, New Zealand's 10-year bond yield also rose to 1.875%. The kiwi dollar remained strong after recording its latest high of 3 years in the previous session, supported by the decision of the Reserve Bank of New Zealand (RBNZ) policy meeting.