19 Jul 2013
AUD/USD jumps after PBOC move
FXstreet.com (Córdoba) - The AUD/USD saw a quick spike higher after the People's Bank of China announced it will scrap controls on lending interest rate, allowing banks to set them.
AUD/USD breaks above 0.9200
AUD/USD rallied on the news, gaining over 60 pips in a matter of minutes to score a fresh daily high of 0.9233 before losing momentum. At time of writing, AUD/USD is trading at the 0.9220 area, where it prints a 0.6% gain on Friday.
AUD/USD technical levels
On the upside, immediate resistance levels for AUD/USD are seen at 0.9240 (Jul 18 high) followed by 0.9290 (Jul 17 high), while supports could be found at 0.9155 (daily low) and 0.9135 (Jul 18 low).
PBoC move
China will scrap the official floor under banks lending rates as the first major step to liberalize its interest rate regime to cope with distorted capital flows and slowing economic growth. The PBoC also said in a statement on its website that it would remove controls over bill discount rates. However, it didn't remove the cap on deposit rates.
AUD/USD breaks above 0.9200
AUD/USD rallied on the news, gaining over 60 pips in a matter of minutes to score a fresh daily high of 0.9233 before losing momentum. At time of writing, AUD/USD is trading at the 0.9220 area, where it prints a 0.6% gain on Friday.
AUD/USD technical levels
On the upside, immediate resistance levels for AUD/USD are seen at 0.9240 (Jul 18 high) followed by 0.9290 (Jul 17 high), while supports could be found at 0.9155 (daily low) and 0.9135 (Jul 18 low).
PBoC move
China will scrap the official floor under banks lending rates as the first major step to liberalize its interest rate regime to cope with distorted capital flows and slowing economic growth. The PBoC also said in a statement on its website that it would remove controls over bill discount rates. However, it didn't remove the cap on deposit rates.