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AUD: A$ Jumps On China Monetary Easing, RBA Coming Up

AUD
RegionGlobalBulletAPACForeign Exchange BulletsAustraliaMarkets

The AUD, equities and commodity prices have jumped on the PBoC’s announcement of monetary stimulus for China’s economy. AUDUSD is up 0.15% to 0.6848 following a low of 0.6826 before the news was revealed. It has spent the session above key resistance at 0.6824, which if sustained will confirm the resumption of the bull cycle. The USD index is up 0.1%.

  • AUDJPY is up 0.3% to 98.48. AUDNZD is 0.1% higher at 1.0925, after a high of 1.0936. AUDEUR is +0.2% to 0.6165 and AUDGBP +0.1% to 0.5129.
  • The PBoC announced a 20bp cut in the 7-day repo to 1.5% and 25bp for mortgage rates, as well as a 25bp reduction in the RRR with possibly another 25-50bp before year end depending on conditions. There are also measures to support China’s equity market.
  • Equities are mixed with the ASX down 0.1% but Hang Seng +1.8% and CSI 300 +1%. Oil prices are higher with WTI +0.6% to $70.79/bbl. Copper is up 0.6% and iron ore has increased to around $92/t.
  • Today the RBA decision is announced at 1430 AEST followed by Governor Bullock’s press conference at 1530 AEST. It is unanimously forecast to leave rates at 4.35%. Later the Fed’s Bowman speaks and US July housing data, September consumer confidence, Philly & Richmond Fed indices print. There’s also September German Ifo. 
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The AUD, equities and commodity prices have jumped on the PBoC’s announcement of monetary stimulus for China’s economy. AUDUSD is up 0.15% to 0.6848 following a low of 0.6826 before the news was revealed. It has spent the session above key resistance at 0.6824, which if sustained will confirm the resumption of the bull cycle. The USD index is up 0.1%.

  • AUDJPY is up 0.3% to 98.48. AUDNZD is 0.1% higher at 1.0925, after a high of 1.0936. AUDEUR is +0.2% to 0.6165 and AUDGBP +0.1% to 0.5129.
  • The PBoC announced a 20bp cut in the 7-day repo to 1.5% and 25bp for mortgage rates, as well as a 25bp reduction in the RRR with possibly another 25-50bp before year end depending on conditions. There are also measures to support China’s equity market.
  • Equities are mixed with the ASX down 0.1% but Hang Seng +1.8% and CSI 300 +1%. Oil prices are higher with WTI +0.6% to $70.79/bbl. Copper is up 0.6% and iron ore has increased to around $92/t.
  • Today the RBA decision is announced at 1430 AEST followed by Governor Bullock’s press conference at 1530 AEST. It is unanimously forecast to leave rates at 4.35%. Later the Fed’s Bowman speaks and US July housing data, September consumer confidence, Philly & Richmond Fed indices print. There’s also September German Ifo.