The Reserve Bank of Australia (RBA) has announced its latest monetary policy decision today as it has recently stepped up its efforts to fight the corona virus (COVID-19). With the Aussie Fed already showing its interest rate of 0.25%, traders can expect any change in quantitative easing (QE).

After the Board Meeting of RBA’s, “The Board has planned to maintain the Current Policy settings, including the targets for the cash rate and yield on 3-year Australian Government Bonds of 25 basis points. For the past few days, infection rates have started declining in many parts of the globe and many countries have started resuming all its activities. If this continues, there will be a recovery in the world economy with the support of both large financial packages and significant easing in monetary policy.

Globally, conditions in financial markets continue to improve, Volatility has slowed and credit markets have gradually up.

Australia, the government bond market is performing well, and the yield on 3-year Australian government bonds (AGS) is targeted at about 25 basis points. Considering these developments, the bank has only purchased government bonds on one occasion from the previous board meeting, bringing the total purchase to about $ 50 billion. The bank is ready to scale back its bond purchases, and will do everything necessary to ensure that the bond markets operate and achieve the 3-year AGS yield.

The Board is committed to supporting jobs, incomes, and businesses and ensuring Australia is well-positioned for a quick recovery. Its activities support keeping costs low and lending to homes and businesses. This accommodating approach will be maintained until needed. The Board does not increase the money rate target until it makes progress toward full employment, and hopes that inflation will remain stable within the 2-3 percent.

AUD/USD 4 Hours chart:

Support: 0.6691 (S1), 0.6589 (S2), 0.6534 (S3).

Resistance: 0.6849 (R1), 0.6904 (R2), 0.7006 (R3).

The announcement from RBA impacts AUD positively and hopeful for the Traders to trade in AUD/USD and we can expect a Strong Buy Trend.