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Ahead of Tuesday’s monetary policy meeting by the Reserve Bank of Australia (RBA), Bloomberg anticipates no change in the Aussie central bank’s policy settings.

At the same time, the analytical piece said, “The Reserve Bank will likely hold preliminary discussions on whether to extend the three-year yield target and undertake further quantitative easing.” “The strength of recent economic data suggests the central bank could opt against rolling its yield target maturity to November 2024 from April 2024 and taper purchases under its longer-dated bond-buying program,” adds Bloomberg.

The risk to the RBA’s recent cautious optimism could also be cited in the piece, which in turn states, “A commitment to this dovish stance is keeping a lid on any currency appreciation, especially as other central banks pivot.”

Also read:  AUD/USD bulls testing bearish commitments at daily resistance