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Could Be Caught In The PBOC Crossfire

AUD

CBA says the latest hike in reserve requirements by the PBOC could affect AUD: "Another watch‑point for AUD in the near term is it may get caught up in Chinese policy‑makers apparent desire to stem the strength in CNH. AUD has been used as a proxy for non‑Japan Asian currencies because of its high liquidity. A bout of CNH weakness may push AUD lower in the near term irrespective of the fundamentals."

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