25 Aug 2015
PBOC delivers booster shot to the Antipodeans
FXStreet (Mumbai) - The entire Antipodean complex enjoyed extra boost to their ongoing recovery after the Chinese central once again surprised markets to the upside by slashing their key rates in a yet another effort to support their ailing economy with the recent stocks crash exacerbating the pain.
China – a key export market for Australia and New Zealand
The Aussie tested 0.7250 levels on the PBOC announcement, witnessing a spike of nearly 50 pips while its OZ neighbour, NZD/USD jumped to highs near 0.6562 levels. Both the Asia-pac currencies are extending their corrective mode after experience massive losses on Monday triggered by risk aversion coming from Chinese growth concerns.
Earlier this session, China’s central bank cut interest rates, responding to the market turmoil of recent days and aim to boost the country’s economic growth. Markets cheer PBOC news and anticipate that such a move may shore up Chinese external demand, thereby benefitting the OZ economies.
At the moment, AUD/USD gains 0.94% to trade at 0.7225 while the Kiwi is up 0.76% near 0.6530 levels.
China – a key export market for Australia and New Zealand
The Aussie tested 0.7250 levels on the PBOC announcement, witnessing a spike of nearly 50 pips while its OZ neighbour, NZD/USD jumped to highs near 0.6562 levels. Both the Asia-pac currencies are extending their corrective mode after experience massive losses on Monday triggered by risk aversion coming from Chinese growth concerns.
Earlier this session, China’s central bank cut interest rates, responding to the market turmoil of recent days and aim to boost the country’s economic growth. Markets cheer PBOC news and anticipate that such a move may shore up Chinese external demand, thereby benefitting the OZ economies.
At the moment, AUD/USD gains 0.94% to trade at 0.7225 while the Kiwi is up 0.76% near 0.6530 levels.