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RBA-driven weakness is likely in the coming sessions, with the AUD/USD pair not likely to participate in the risk-on run for now, according to economists at OCBC Bank. 

On Wednesday, the aussie is extending its sideways consolidative price action and remains confined in a range, around the 0.7615-20 region.

Key quotes

“The Reserve Bank of Australia (RBA) kept policy rates unchanged. The dovish surprise came in the form of the QE extension by six months, or AUD100 B in total, despite the current mandate not expiring until April.” “Overall, the RBA looks to be aligned with the ECB and Fed near the dovish extreme of the spectrum. Expect some downside pressure on the AUD in the medium-term.” 

“A heavy iron ore complex will also weigh negatively.”

“Bias for the aussie to dip below the 0.7600 support for now, with bounces limited to 0.7650/60.”