The RBA did, however, provide more clues about their QE program
The aussie is pushing a little higher after the RBA policy decision, with AUD/USD rising to a high of 0.6148 from around 0.6120 prior to the announcement.
There was no change to monetary policy but the central bank did offer some insight about how they are going to go about their QE program.
This to me, was the key passage in the statement by the RBA:
The Bank will do what is necessary to achieve the 3-year yield target, with the target expected to remain in place until progress is being made towards the goals for full employment and inflation. Since this target was introduced, the Bank has bought around $36 billion of government bonds in secondary markets, including bonds issued by the states and territories. The Bank will continue to promote the smooth functioning of these important markets. If conditions continue to improve, though, it is likely that smaller and less frequent purchases of government bonds will be required.
I reckon that is the part that can be interpreted as the more 'hawkish' tilt but then again, it is all conjecture as it highly depends on "if conditions continue to improve".
But at least we know exactly what they are looking to do with the current QE program and that is not to flood the market with excess liquidity. The RBA will continue to keep at a more yield curve control kind of action for the time being at least.
For AUD/USD, price continues to keep above the key hourly moving averages after a break above those levels yesterday.
Those levels at 0.6060-85 currently remain the key risk for buyers in chasing a further upside move with all eyes glued towards a potential test of the 0.6200 handle next.
