Reserve Bank of Australia today announced an interest rate. At its meeting, RBA made no changes to its monetary policy settings once again, with the official cash rate (OCR) maintained a record low of 0.25%, as expected. The Bank has not purchased government bonds for some time. Until date with total purchases of around $50 billion, The Bank is ready to scale-up its bond purchases again and will take all the necessary steps to ensure bond markets remain functional and to achieve the yield target for 3-year AGS.

The steps taken by the Bank help in supporting the liquidity in the Australian financial system. Authorized deposit-taking institutions are continuing to draw on the Term Funding Facility, with total drawings to date of around $15 billion. The Board remains committed to so all the necessary steps to support jobs, incomes and businesses and to make sure that Australia is well placed for the recovery.

It is a tough time for the  Australian economy and is experiencing the biggest contraction since the 1930s. Since March, an unprecedented 800,000 people have lost their jobs, with many others retaining their job only because of government and other support programs. But the employment conditions gets stabilized recently and the downturn has been less severe than earlier expected.

Australian job advertisements jumped a record 42 percent in June as much of the economy re-opened from coronavirus lockdowns, but remained sharply lower from a year earlier.“After an initial bounce, we expect the recovery will be a lot slower. There have been a number of recent large-scale lay-offs announced across a wide range of sectors, including travel, retail, media, consulting, and education,” said ANZ senior economist Catherine Birch.

AUD/USD 4 Hour Chart:

Support: 0.6940 (S1), 0.6909 (S2), 0.6885 (S3).

Resistance: 0.6996 (R1), 0.7019 (R2), 0.7051 (R3).

All these recent updates portrays the signs of a gradual improvement in Australia but the nature and speed of the economic recovery remains highly uncertain which sets a mixed trend for AUD/USD.