AUD liking the RBA & Fed establishing swap lines for the provision of USD liquidity

The Federal Reserve and the Reserve Bank of Australia will establish a US$60 billion swap line

• to provide US dollars in exchange for Australian dollars

From an RBA statement.

The US dollars will be made available to local market participants by the Reserve Bank in US dollar repurchase agreements (repos) against Australian dollars

The Fed flagged they were doing this with a number central banks, RBA making their announcement just today. Its seen some confidence return for the AUD, which had fallen earlier in the session under 0.5700 but has bounced back. RBNZ have done similar, NZD also higher on the session now.

Earlier:

• RBA conduct their first ever round of QE bond buying: AUD 5bn