The Australian dollar climbed against its most major counterparts in the Asian session on Tuesday, after the Reserve Bank of Australia left its cash rate unchanged and said it will continue its bond buying program when it ends in early September.
The Reserve Bank of Australia maintained its cash rate and the three-year government bond yield target at 0.1 percent, as expected.
The central bank will retain the April 2024 bond as the bond for the 3-year yield target.
The QE programme was extended at a rate of $4 billion a week until at least mid November. The current bond purchase program will end in early September.
The RBA reiterated that it will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target range. The Bank's central scenario for the economy is that this condition will not be met before 2024.
The aussie climbed to 8-day highs of 0.7572 against the greenback and 83.93 against the yen, from its early lows of 0.7524 and 83.47, respectively.
Reversing from its previous lows of 1.5756 against the euro and 0.9282 against the loonie, the aussie rose to near a 4-week high of 1.5680 and a 1-week high of 0.9334, respectively.
The currency is likely to locate resistance around 0.78 against the greenback, 86 against the yen, 1.54 against the euro and 0.96 against the loonie.