The Australian dollar has been stronger for two days in a row. That currency reached its highest level in 0.7380 to the US dollar in yesterday trading. However, there is one thing. 

The Aussie rebound effort can be still corrected. The newest report signs that the Australia Central Bank or RBA maunyaa the more dovish attitude. That is caused by the lockdown. 

Lockdown pushes them to maintain the monetary stimulus in a huge amount. The RBA has been starting tapering lately by reducing the obligation purchase program scale that they have.

That is from the AUD 5 billion to become 4 billion per week. The total obligation purchase so far is AUD 100 billion and it is planned to be ended in the September. 

The Extended Lockdown May Avoid the Tapering

The extended tight lockdown in several areas can avoid the RBA tapering continuity. Some places with the tight quarantine such as Sydney and Melbourne are the major economu activity center. 

It is especially in Australia. That country may faces the third quarter economy performance which is worse than the expectation. RBA may be forced to cancel its decision.

That is a decision to reduce the obligation purchase or even increase it again. Today mass media in Australia reported that the long queue of the help seeker is started to be formed

That can be seen in front of the government institutions. The companies in the biggest cities in Australia sent home their staffs with the limited salary that shows the step back effort.

RBA May not Continue its Monetary Tightening 

The RBA may not continue the tightening monetary policy amid deteriorating labor market conditions. Interest rates are also likely to be maintained at a rate of 0.1 percent for a longer period.

It is especially than the market currently forecasts, in order to provide support for the next stage of economic recovery. That bank may prefer to give an early warning to the market participants. 

That is a warning about their decision to cancel the tapering. That may need to be made and announced after the policy maker meeting in August. Yield obligation in Australia has declined. 

The cause is a tightened lockdown in the two different areas which are known as the biggest economy center. This action could slow down the economy activity in that country 

AUD is in a Short Position

AUD is sold in a short position bu the investment managers because this currency lost its strength in a carry trade. It is also because of a tighter restriction prospect. 

The zero COVID strategy in Australia through the tight lockdown and low vaccination has been making that country is to prone to the delta variant. The RORO continues to exist in the global finance. 

RORO is known as the risk on / risk off situation. It is because the market participants continue to worry about the SARS-COV-2 virus mutation and the central bank policy changes in several countries. 

The USD/JPY is slightly stronger for about 0.2% to the level of 110.10 in the yesterday trade. However, the continued RORO wave has a chance to support the Yen versus dollar. 

Yen Has a Great Performance

The Japanese yen was one of the best performing currencies this month. Its position slackened slightly after the BoJ revised its GDP projections some time ago. That is quite surprising. 

However, some analysts think the yen is likely to strengthen further against a number of other major currencies. Investor concerns about the SARS-COV-2 virus mutation are a major factor.

It is especially to support the recent strengthening of the Japanese yen, as well as potentially a further appreciation motor. In addition, some analysts signaled a rise in Unitef States inflation