AUD rises as RBA surprised the market with its decision to taper bond purchases

AUD continues its upswing on Tuesday as RBA concluded its meeting with the decision to taper its bond purchases. The current scale of AUD 5 billion per week will be reduced to AUD 4 billion per week. On the other hand, the interest rate has been kept unchanged. By making such a move, RBA has signaled the market that it is tightening its monetary policy. The decision is faster than analysts have previously expected. AUDUSD has risen aggressively after the announcement, currently trading at 0.7402, up about 0.11% in today’s session.

Outside Australia, the market has been waiting for the US job data which will be released this week. Analysts expect the ADP payrolls to be landed at 695k and the nonfarm payrolls to be landed at 880k.