AUD/USD snaps a four-day uptrend while taking offers around 0.7450, down 0.0.23% intraday, as the pair traders begin the week comprising the Reserve Bank of Australia (RBA) monetary policy meeting.
In addition to the pre-RBA sentiment, the coronavirus concerns in Australia also weigh on the AUD/USD prices to probe bulls near seven-week high, not to forget after posting a two-week uptrend.
Concerning the RBA monetary policy decision, Bloomberg's latest poll of 16 economists said, “Australia’s central bankers are set to revisit the question of whether to delay a planned taper of bond purchases as a worsening outbreak of the delta variant dims prospects of a rapid economic rebound."
“Reserve Bank of Australia will defer scaling back quantitative easing on Tuesday,” Ten of 16 economists surveyed mentioned per Bloomberg.
The piece highlights the RBA's recent readiness to scale back weekly bond purchases from September to A$4 billion ($3 billion) from A$5 billion while also citing the challenges for the Aussie central bank going forward. Among them, virus woes and the chatters concerning the ECB and the Fed are the key issues.
In this regards, Bloomberg said, "What’s changed in the interim is virus strategy. New South Wales and Victoria states, accounting for about 55% of gross domestic product and both largely locked down, are aiming to vaccinate their way out of the delta crisis rather than drive cases back to zero. That suggests a more gradual lifting of restrictions as opposed to broad-based removals that allowed a V-shaped economic recovery through late 2020 and early 2021."
Read: AUD/USD shines on firmer grounds, RBA will be the key event risk