The People’s Bank of China doesn’t stay behind the ECB’s dovishness: a rate cut of 25 basis points was announced. The new one year lending rate is 4.35%. This comes to mitigate the slowdown, and despite better than expected GDP figures earlier this week.
AUD/USD is ticking up, getting closer to 0.73. The move was not totally unexpected, but the timing, as always with China, was certainly not predicted. Chinese stimulus is supportive of the Australian economy that is still dependent on China importing Australia’s metal exports.
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