RBA Holds Steady, AUD/USD Rises
AUD/USD - H1
The Reserve Bank of Australia (RBA) opted to maintain interest rates at 0.1% and continue its asset purchases program at the rate of A$ 4 billion/week until at least mid-February 2022. [1]
The central bank sounded upbeat on economic conditions and employment, noting that "leading indicators point to a strong recovery in the labour market".
On the issue of the latest Covid-19 variant, it acknowledged that Omicron is a new source of uncertainty, but said that "it is not expected to derail the recovery".
RBA said that it will consider its bond buying program at the next meeting on February, a statement seen by many as a nod to the program's conclusion or at least continuation at a lowered pace.
The above factors, along with broader upbeat mood on hopes that the Omicron variant will not be particularly severe, help the Aussie.
Last week was the fifth straight negative one and had ended with a drop to the lowest level since November 2020. Yesterday though it staged a recovery, which it extends today, breaking above the EMA100 (black line).
This gives AUD/USD the chance to push for 0.7118-25, although sustained optimism is probably required for a larger correction towards 0.7173.
On the other hand, the rise looks overextend from a technical prospective, as the Relative Strength Index is overbought, creating risk for pullback to sub-0.7052 territory, but its 2021 lows (0.6990-2) appears remote at this stage.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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| Retrieved 12 Apr 2026 https://www.rba.gov.au/media-releases/2021/mr-21-29.html |
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