Australian dlr Dips, RBA Stays Dovish in Face of Strong Data

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SYDNEY, June 1 Reuters The Australian dollar pared early gains on Tuesday after the countrys central bank stuck to its stubbornly dovish script on policy despite a salvo of upbeat economic data pointing to surprisingly strong growth.

The Aussie dollar was still up slightly on the day at 0.7746, having edged further away from last weeks trough of 0.7677. It faces stiff resistance at 0.7796 and 0.7813, which have held for the past three weeks.

The New Zealand dollar was 0.1 firmer at 0.7278, having found solid support around 0.72157230. It needs to clear the recent threemonth peak of 0.7316 to extend the rally.

The Aussie pulled back after the Reserve Bank of Australia RBA concluded its monthly policy meeting by holding rates at 0.1, as widely expected, while reiterating that no hike was likely until at least 2024.

The bank noted the economy had performed better than expected, but also cautioned it was vulnerable to coronavirus lockdowns such as the one currently gripping Victoria.

It was also notably less hawkish than the Reserve Bank of New Zealand RBNZ, which last week projected it might raise rates by the third quarter of next year.

The RBA has said it would decide next month on whether to extend a bondbuying programme and roll over its threeyear bond target.

Investors generally assume the bank will go with a third round of bond buying, perhaps of another A100 billion 77.62 billion, but will stick with the April 2024 bond for its target and not roll over to the…

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