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UPDATE 1-Australia s central bank wary in case Delta slows recovery
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Australia s central bank says premature to end bond buying programme
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The Australian and New Zealand Dollars finished higher last week and in a position to challenge multi-year highs reached in January. The rallies were fueled by a weaker U.S. Dollar and increased demand for higher risk assets.
Investors also responded to rising government bond yields that signaled their respective economies were heating up. This raises the possibility of an earlier than expected tightening from the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ). This issue may be addressed by the RBNZ on Wednesday.
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