The Australian dollar remains at the minimums
26.08.2015
The Australian dollar is weak, and the stronger market "spins" the theme of the slowdown of the Chinese economy and the inability to retain the previous rate of growth, the more reasons there are to sell the AUD. Today, the pair has seen a slight pause. It is unlikely that it will be long, but still.
In the middle of the week, it became known that the PBOC through the mechanism of a short-term auction "poured" into the economy and the banking system 140 billion yuan ($ 22 billion). The rate was 2.3%, loan term - 6 days. This is the second large-scale intervention by the NSC in the current year.
The monetary measures taken in China are consistent and comprehensive. Yesterday the Chinese regulator reconsidered lowering the reserve requirements for banks, reducing them by half a percent. This was done to preserve the healthy level of liquidity in the system.
Can these fiscal mechanisms stabilize the situation with the Chinese GDP? Yes, if the world can abstain from external shocks. The growth potential of the US interest rate this year has already been included in market price, and the Yuan is protected from the avalanche effect of this step. However, to stabilize is not to force growth. For the Australian economy, prospects for China's economic system are important: China has been and remains its key trading partner.
RoboForex Analytical Department
In the middle of the week, it became known that the PBOC through the mechanism of a short-term auction "poured" into the economy and the banking system 140 billion yuan ($ 22 billion). The rate was 2.3%, loan term - 6 days. This is the second large-scale intervention by the NSC in the current year.
The monetary measures taken in China are consistent and comprehensive. Yesterday the Chinese regulator reconsidered lowering the reserve requirements for banks, reducing them by half a percent. This was done to preserve the healthy level of liquidity in the system.
Can these fiscal mechanisms stabilize the situation with the Chinese GDP? Yes, if the world can abstain from external shocks. The growth potential of the US interest rate this year has already been included in market price, and the Yuan is protected from the avalanche effect of this step. However, to stabilize is not to force growth. For the Australian economy, prospects for China's economic system are important: China has been and remains its key trading partner.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.