Westpac were previously looking for an extra 50bn, have increased that now to 100bn
RBA to extend the program in October of this year
- would extend the QE facility out to around October 2022.
- It is unlikely that the FED will have made sufficient progress towards its goals by October this year to warrant scaling back its asset purchases.
- Were the RBA to taper it will expose the AUD and signal to the market that it has begun tightening.
Added – AUS 10yr bonds have caught a bit of a bid
AUD/USD adding on a few points regardless (NZD up also …. GBP too … so its not an AUD move):