In an announcement on Tuesday morning, the Reserve bank of Australia or rba maintained its interest rate. That was aeound the lowest level of 0.1 percent based on the data. 

This number has been based on the market expectation. That institution said that the low interest rate period will be continued until next year or 2024. They also gave an opinion. 

RBA seen that the economy in Australia is recovered faster than the previous prediction. The central bank representative said that the recovery will be accelerated quickly. 

It is especially if the pandemic can be handled. The RBA policy makersbalso discuss about the employment market condition in Australia. They think that it is also recovered. 

The Unemployment Rate Declines

Based on the report, the unemployment rate declined by 4.9% in June. Besides that, the inflation trend is also stable because of the recovery in the employment sector. 

That is why; RBA decided to continue the tapering program for their obligation purchase. Before, that was planned to be ended in September. How is the respond? 

That decision is positively responded by the market participants because it reflects the optimism amidst the risk of delta coronavirus which is spreading in all over the world. 

However, the RBA has not set aside the pandemic threat yet. The economy prospect in the future is still uncertain due to the delta variant which is easy to infect the people. 

AUD / USD Tries to Rise

Furthermore, the US centers for Disease Control and Prevention or CDC stated that this variant is maybe more dangerous than the other types. Aside from that concern, there is a commitment. 

It is related to the commitment made by the Reserve Bank of Australia to do the tapering program. That becomes a positive catalyst that supports the Australian dollar increase. 

When this news was written, the AUD / USD pair was sold around the level of 0.7397. That was 0.49 percent stronger than the daily open price in the market. 

The next market participant focus is now the USA nfp data release. That employment report is scheduled to release in the next Friday and can become a catalyst of the USD movement vs the other major currencies. 

PMI Manufactured Data Released by Japan

Elsewhere, Japan Statistic Bureau released the PMI manufactured data on Sunday. The result showed that it increased from 52.4 to become 53.0 in July which is quite impressive. 

The cause is the output expansion and new orders which are stronger in the middle of the coronavirus cases decline which happens gradually. It is especially in that country. 

The whole output and new orders increase in a quicker speed because the strong performance in the automotive. The electronic sector also shows its support so far. 

The solid demand for the semiconductor products also support the increse which is happened this month. The optimism can be also seen in the company sub index expectation for the next year. 

The Lack of Stock And Logistic Becomes an Obstacle

Until now, the producers are still fighting with the lack of stock problem and the logistic delivery. That is caused by the lack of cost which is experienced by some enterprises today. 

That problem is also triggered by the input price jump which is so quick. The experts said that it is the fastest speed since September 2008. This condition for sure will make an impact. 

It is especially for the producer price in the next release. The industry sector is quite stable in the expansion path. Most of the economist predict that the economy there will be slowing down. 

It is especially in the second and third quarter this year. The emergency lockdown applied in Tokyo and some areas there have a risk to weight on the consumption sector.