On Tuesday, the Reserve Bank of Australia or RBA announced their policy to hold the reference interest level in 0.1 percent. The Australia central bank also shared their commitment.

It is especially to continue the government security purchase for about $4 billion per week. That will be done until the economy grows continuously in the middle of this situation. 

In their statement, RBA said that the pandemic wave is still shadowing the Australua economy, especially in the third quarter. However, the economy step back is maybe just temporary.

It is caused by the massive vaccination program made by the government there. Furthermore, The RBA's policy-making board is optimistic that the economy will recover in the fourth quarter. 

The Employment Market may be Infected

But in general, there is uncertainty as to how big the Australian economy is rebounding. In fact, it is likely that the recovery will be reversed until early 2022 or next year. 

In addition, the RBA is also highlighting the labour market which most likely to be affected by the implementation of the lockdown during the third quarter. That is the most possible time. 

However, the employment sector is believed to remain accelerated in the long term. That refers to data showing by so many companies which are looking for manpower.

That is especially ahead of the opening of lockdowns in October and November. However, the RBA acknowledged that the problem of global supply chain congestion was enough to affect the prices of some products.

The Loosened Monetary Policy will be Remained

Because of the condition above, the impact on overall inflation remained limited. In response to some of these conditions, the RBA board is committed to maintaining loose monetary policy.

It is maybe until the maximum labor market is achieved (Full Employment) and inflation moves stable in the range of 2-3 percent. However, they have their own calculations.

They see this condition as not going to be achieved before 2024, thus closing the prospect of a rate hike in the near future. Elsewhere, the AUD / USD pair is now weakening.

Overall, the RBA's statement this afternoon did little to surprise the market participants. At the time this news was released, the AUD/USD pair was in the range of 0.7265.

The cause of that Weakening

Based on the data, it means that the AUD/USD pair is 0.25 percent lower than the daily Open level. The australian dollar's weakness this afternoon was largely caused by a thing. 

Basically, it is due to the risk-off sentiment amid a surge in energy prices that could have an impact on inflation. Meanwhile, the USD/JPY is also in a higher position today or on Wednesday. 

It is happened after this pair noted the 3-day in a row decline. When this news was written, the USD/JPY is sold around the level of 111.50 or 0.04% higher for this day. 

The Treasury yield benchmark for 10-year in the united states increased by 5 point basis and becomes 1.53%. The USD index or DXY follows the AS – T obligation yield result. 

A Warning Made by Joe Biden

The USA ISM Manufacturing Purchasing Managers' Index or the PMI raised by 61.9 in September. That was from 61.7 in August while the trade deficit in the America expanded to a high record. 

That record was $73.3 in August. Elsewhere, the United States of America President, Joe Biden warned on Tuesday about the fail to make the social spending package and their huge infrastructure.

In addition, the United States Senate plans to vote on Wednesday to suspend the U.S. debt ceiling while facing Republicans. It creates several effects in the market. 

For now, the the people are waiting for the ADP Employment Change in the America and the Bostic Fed member's speech to gauge market sentiment. The result is going to be highlighted.