AUD/USD a little lower after RBA bought bonds

As I said in that post, there were questions about the RBA commitment to their yield target. The target is 0.1% and this bond had been circa 0.17%. The Bank had been trying to hold its yield down (price up) by raising the cost of shorting it via higher repo charges. Now in with a more direct approach, buying for the first time since February.    

AUD dribbled a few tics lower on the RBA showing its commitment (which is how this is being read) to holding rates down …. and as I prepare the chart AUD/USD moves back more or less unchanged, making a liar out of me ….

Headline is here: RBA to buy April 2024 Australian government bonds, up to AUD 1bn


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